TSP withdrawal for investment property


Q. If a Thrift Savings Plan in-service withdrawal is used to purchase rental (investment) property, are federal taxes on the TSP in-service withdrawal deferred until the rental property is sold?

A. No. The withdrawal will be considered ordinary income in the year it is distributed.


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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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