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D
dj0hns0n
August 8, 2024
Question

Hardship TSP withdrawal penalty

  • August 8, 2024
  • 1 reply
  • 0 views

I am contemplating withdrawing from my TSP due to financial hardship. I'm aware of the initial taxes withheld but not sure of federal and state impacts for the state of Virginia. 

    1 reply

    T
    TomD8
    Employee
    August 9, 2024

    The TSP website explains the tax consequences of a hardship withdrawal:

    https://www.tsp.gov/in-service-withdrawal-basics/financial-hardship/#:~:text=Having%20the%20option%20of%20taking,carefully%20and%20know%20the%20consequences.

     

    An income source that is taxable at the federal level will also be taxable by the State of Virginia.

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
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