12/14/2023 0 Comments Tsp 1099 r![]() “The CARES Act passed by Congress in March of 2020 suspended the requirement to take a required minimum distribution from the TSP. The TSP shared this information with me and asked me to share it with my readers: Why did the TSP take the unusual step of assuring people it wasn’t making a mistake? The TSP is hearing from a lot of participants who are confused and angry. Please consult the IRS or a tax adviser for instructions and additional information on tax filing.” If you received an RMD that was eligible for rollover in 2020 and you repaid it or rolled it over by the deadline, then it’s not taxable income. Remember that not all reported income is taxable income. You should not expect a “corrected” 1099-R. You may have already received the 1099-R. “1099-Rs for repaid 2020 RMDs are correct - If you received a required minimum distribution (RMD) from your TSP account in 2020, we must report the income and send you a Form 1099-R even if you rolled the money back into your account or into another retirement account under the terms of the CARES Act. The TSP recently posted this on its website: Here, brave soul that she is, is what she passed along:ĭid you get a 1099-R from the TSP and you’re mad as heck? Do you want to know how to read your 1099 and report a rollover on your tax return? The FRTIB runs the Thrift Savings Plan program. I asked Kim Weaver, director of external affairs for the Federal Retirement Thrift Investment Board, to simplify things, if possible. So we punted.įederal News Network's Cyber Leaders Exchange: Discover the ways that agencies lead the way as the government “fundamentally re-imagines America’s cyber social construct”. Result: Millions are still baffled, and often angry, with the complex new deal. Millions of Americans were confused by the rules which let people make changes in their RMDs. But, as with any tax code change written by Congress, nothing is simple. In this case there are new rules - courtesy as always of the House, Senate and White House - dealing with the CARES Act and your 401k plan.Īmong other things, the CARES Act allowed many Americans to delay taking a required minimum distribution from their 401k (or TSP) plan. This year, for example, millions of confused/angry/frustrated Americans are bumping up, again, against rules-of-life 1 and 3. Congress and signed into law by President Donald Trump on Main response to the economic fallout from COVID-19. The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a $2.2 trillion economic stimulus bill passed by the 116th U.S. ![]() This year’s new twist income tax nightmare comes courtesy of a global pandemic. Don’t mess with the Internal Revenue Service!.This year’s new twist income tax nightmare comes. Simple enough, right? And yet, time after time, stuff happens. Those rules are:ĭon’t mess with the Internal Revenue Service! Early in life there are three basic rules that most Americans learn if they want to get by, and prosper, in life. ![]()
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