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The TSP has said it will mail within the upcoming weeks the tax form for withdrawals taken, or a TSP loan foreclosed, between January 1-December 28, 2022—IRS Form 1099-R, “Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.” Withdrawals processed on December 29 and 30 are taxable income for 2023, it said.
Those who have not received that mailing by mid-February can get a copy through the My Account feature at tsp.gov, it said. If a correction is needed, corrected forms will be issued within three weeks of verifying the correction, it said, and those expecting a corrected form would be advised to wait to file their 2022 taxes until they receive it.
The TSP also said that installment payments based on life expectance have been recalculated, based on a recently updated life expectancy table from the IRS, and that notices are being sent out to account holders receiving those payments, based on how they chose to receive such notices.
Also, retired account holders and spousal survivor beneficiaries who will be age 73 or older this calendar year have been mailed notices of their required minimum distributions for the year. The age at which such payouts must begin was 72 through 2022 but the wrapup budget bill enacted late in 2022 raised it to 73 effective with this year. The law will further increase the age to 75, but not until 2033.
Meanwhile, the TSP said separately that it is assessing how other provisions of that law might apply to the program. Other provisions that generally apply to TSP-like programs involve changes to certain withdrawal policies and investment limits under the “catch-up contributions” feature for actively employed account holders age 50 and above.
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See also,
Decisions to Make about FEGLI after Retirement
Oversight of Federal Employment, Retirement Issues Ahead
The TSP 2022 Website and Unresolved Issues
The Process of Retiring: Check Your Agency’s Work