Thrift Savings Plan

poormarriedcoupl · ‎May 31, 2019

My husband retired from the Federal Government in June 2016. He had PNC Bank withdraw his Thrift Savings Plan and move it to an IRA/Life Insurance account. We received a 1099-R from Thrift Savings Plan today. Do we have to add it as income. We never got the money, it went to another account,

MichaelMc · ‎May 31, 2019

You will have to report the distribution, but it will not be included in your gross income. As your distribution was rolled over, you will not have taxable income as a result.

The Thrift Savings Plan, just like all plan administrators, is required to issue a Form 1099-R containing the amount of every distribution and the distribution codes. Enter this information into TurboTax, carefully enter all the questions that follow, and your distribution will receive the correct tax treatment. Just after entering the data from the form, you will begin a series of questions such as "What did you do with this distribution?" When you answer that you rolled the money over, it will ask some more questions to properly exclude the amount from your taxable income.

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MichaelMc · ‎May 31, 2019

You will have to report the distribution, but it will not be included in your gross income. As your distribution was rolled over, you will not have taxable income as a result.

The Thrift Savings Plan, just like all plan administrators, is required to issue a Form 1099-R containing the amount of every distribution and the distribution codes. Enter this information into TurboTax, carefully enter all the questions that follow, and your distribution will receive the correct tax treatment. Just after entering the data from the form, you will begin a series of questions such as "What did you do with this distribution?" When you answer that you rolled the money over, it will ask some more questions to properly exclude the amount from your taxable income.