Taxation on TSP


Q. How much is the TSP taxed upon retirement if pulled out all at once, and how does that affect you’re end-of-year taxes at the end of that year?

A. Your withdrawal will be subject to a 20 percent mandatory federal tax withholding and the amount of your withdrawal will be added to your tax return for the year as ordinary income. The withholding is considered a deposit against your federal tax liability for the year.


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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 and view his blog at

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