Also coming soon are RMD calculation notices to separated participants. Image: Yuriy K/Shutterstock.com
By: FEDweek StaffThe TSP has said it will soon send out several notices to account holders who took withdrawals in 2023 including the IRS form 1099-R, used for tax purposes.
That form will show distributions (as well as a taxed or foreclosed loan) taken January 1-December 27; those processed on December 28 or 29 will be considered 2024 distributions, a TSP notice says.
“A copy of your 2023 Form 1099-R will also be available in your My Account secure participant mailbox by mid-February. If needed, corrected forms will be issued within three weeks of verifying the correction. If you’re expecting a corrected Form 1099-R, you may wish to wait to file your taxes until you receive the form,” it says.
It adds: “The content on the back of your 2023 Form 1099-R will look different from previous 1099-R forms you may have received from the TSP. Rather than feature content specific to the TSP, the back of the 2023 Form 1099-R we send you will include standard IRS content. This is common practice for defined contribution retirement plans, and it means you’ll see some information not relevant to the TSP. As always, we encourage you to consult a qualified tax advisor or the IRS for questions about filing your taxes.”
Also coming soon, it said, are required minimum distribution calculation notices to separated participants who will be 73 and older in 2024 and to spousal beneficiaries with RMDs due for the 2024 calendar year; and recalculated amounts for those taking post-separation withdrawals based on life expectancy.
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