TSP and state taxes


Q: I retired from federal service Jan. 1, 2010, under CSRS. In April last year I received a full distribution from my TSP account. I live in Pennsylvania and am interested to know if I’m responsible for paying state tax on my full TSP ditribution.

A: My review of the Pennsylvania rules leads me to understand that TSP income is not taxed if you are retired and at least 59½ years old when it is taken. You should consult a PA/CPA to be sure, however.


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