Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Thrift Savings Plan (TSP) and Taxes

How are Thrift Savings Plan (TSP) excess deferrals treated for tax purposes?  If Thrift Savings Plan excess deferrals are made then those deferrals are treated as income in the year the contributions are made.  The excess TSP deferrals are treated as income whether they are refunded to the employee or not.  Deferred income is reported on an employee’s W-2.

Traditional excess deferrals to your TSP.gov account must be reported on the employee’s individual tax return as taxable income for the year in which excess deferrals were made.  TSP Roth excess deferrals are also treated as taxable income in the year the excess deferrals were made.

Excess TSP deferrals that are taken as a refund from the TSP are reported on IRS Form 1099-R (distribution from annuities, pensions, insurance contracts, retirement and profit-sharing plans and IRAs).

Check with you tax advisor, financial planner or educator during the course of the year to make certain you are making sound decisions about managing your TSP and your taxes well.

……..Also take full advantage of the many resources available to you in your Human Resources Office (Postal Employees can use PostalEase and LiteBlue) to help you make plans to retire well.

P. S.  Always Remember to Share What you Know.

Here is my Bio details:
Prospective clients will hire the best,
most credible professional they can find.

The more Expertise and Authority you demonstrate,
the more Trust you will earn, the more business you will win.

Dianna Tafazoli Disclaimer

Contact Dianna Tafazoli

Search for Public Sector Retirement Expert.

Receive the Best advice.

PSR Experts can help you determine if Public Sector Retirement is right for you or if you should look for alternatives.

The Best Advice creates
the best results.

Recent Articles

More Articles by Dianna Tafazoli

ORGANIZATIONS THAT GIVE DISCOUNTS TO VETERANS

ORGANIZATIONS THAT GIVE DISCOUNTS TO VETERANS – by Dianna Tafazoli We can never think of enough ways to honor Veterans...

New Orleans

NEW ORLEANS IS CLEANING HOUSE – by Dianna Tafazoli

Image Credits New Orleans Mayor Mitch Landrieu decided with a vote from the New Orleans City Council on December 17,...

retirement benefits

INTRODUCING MR. CYBER SECURITY by Dianna Tafazoli

Clifton Triplett is the Cyber Advisor in the Office of Personnel Management. Mr. Triplett comes from SteelePointe Partners, a global...

Search For Public Sector Retirement Expert

Receive the Best advice.

PSR Experts can help you determine if
Public Sector Retirement is right for you or if you should
look for alternatives.

The Best Advice creates

the best results.

Subscribe to our Newsletter

"*" indicates required fields

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

Book Phone Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Get In Touch

Stay up to date on the latest information about Public Sector Retirement.

The Best Advice Creates The Best