Is my federal Thrift Savings Plan a Qualified plan or a Non-qualified plan?

[SabrinaD2]

Yes, your federal Thrift Savings Plan (TSP) is normally considered a qualified retirement plan

Here are some Key Points:

• Tax Benefits: As a qualified plan, contributions to your TSP are tax-deferred, meaning you don't pay taxes on the money until you withdraw it in retirement
• Contribution Limits: The TSP follows the same contribution limits as other qualified plans like 401(k)s. For 2025, the limit is $23,500 ($23,000 in 2024), with an additional catch-up contribution of $7,500 for those aged 50 and older and $11,250 for 60-63 year olds.
• Withdrawal Rules: Withdrawals from your TSP are subject to income tax, and early withdrawals (before age 59½) may incur a 10% penalty unless an exception applies
• For more details on TSP contributions and withdrawals, you can visit the TSP official website
• How to Enter in TurboTax:
  • If TSP through your employer, your contribution is reported in Box 12 of your W-2 with the letter code D.
  • Because your contribution is included in your W-2, do not re-enter it in the retirement section.
  • Log into TurboTax and go to Income - then W-2  add your W2 there.