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March 31, 2024
Solved

We're exempt from early withdraw fee from our TSP (rule 408(d)(4). Our 1099-R line 7 digit is wrong for situation. TSP keeps messing it up. What can we do?

  • March 31, 2024
  • 1 reply
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What Form can we use in addition to the original 1099-R?  Or should we keep waiting on TSP to finally get it corrected and file an extension?
Best answer by dmertz

Section 408(d)(4) pertains only to IRAs.  The federal TSP is not an IRA.

 

With regard to the federal TSP, there is no such thing as a return of contribution before the due date of your tax return.  Elective deferrals are irrevocable, so if you received a distribution before reaching age 59½, the distribution is an early distribution subject to penalty and code 1 is correct.

1 reply

dmertzAnswer
Employee
March 31, 2024

Section 408(d)(4) pertains only to IRAs.  The federal TSP is not an IRA.

 

With regard to the federal TSP, there is no such thing as a return of contribution before the due date of your tax return.  Elective deferrals are irrevocable, so if you received a distribution before reaching age 59½, the distribution is an early distribution subject to penalty and code 1 is correct.