taxation of TSP distribution in Oregon

[Veg]

I am a retired federal firefighter and live in Oregon.  I am trying to find out if my gross distribution from TSP every year is taxable or if it has the same tax treatment as my federal pension.

[DanaB27 · Accepted solution]

Yes, a TSP withdrawal has usually the same tax treatment as your federal pension.

"Federal Thrift Savings Plan (TSP). Once a taxpayer is a retiree, withdrawals from federal TSP accounts are eligible for the subtraction based on dates of service. Withdrawals prior to retirement aren’t eligible because the taxpayer must be a retiree at the time of withdrawal to be eligible for the subtraction. If the taxpayer moves money from a TSP to another type of account, the account loses its character and is no longer a federal pension. In this case, future withdrawals wouldn't be eligible for the subtraction" Publication OR-17 2019 page 64