Q. I plan on withdrawing a six-figure sum from my Thrift Savings Plan after Nov. 30, when I am 59½. If I withdraw the money in 2013, will it count toward my earnings as far as taxes are concerned? If so, should I wait until 2014? I plan on retiring in May 2014.
A. To the extent that they come from your traditional TSP balance, your withdrawals are added to your tax return for the year in which the payment is constructively received. You should consult a competent tax adviser for guidance on when it will be best to take your money for the purpose of minimizing the tax costs. The answer will depend upon the facts contained in your return for the year(s) in question.