TSP and back taxes


Q: I owe back taxes to the IRS. Is there any way to transfer the money from my TSP balance back to the government? Most of the balance I have in my TSP account is the amount that was matching funds from the government. I just want to give it back to satisfy my tax debt and start all over again, and be square with the IRS. Can this be done?

A: Not that I know of. You’ll have to either take a loan or a withdrawal and pay any taxes due before sending the money to the Treasury.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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