Ben Raikes, CFP®, EA, of Mason & Associates discusses the various methods in which funds can be distributed from the Thrift Savings Plan and the tax consequences of each distribution type.

ℹ️ About the Episode:

• There are three primary distribution methods from TSP:

• Traditional TSP distributions are fully taxable at ordinary income rates.

• Qualified Roth TSP distributions are tax-free.

• Qualified rollover distributions to an IRA or Employer Retirement Plan are tax-free.

• Work with a financial advisor to lessen the tax burden of these distributions!