State taxing of TSP


Q. I have a question regarding TSP. I live in Pennsylvania, and when I filed my taxes a few years back, I received feedback that the forms were incorrectly filled out. I am supposed to pay up-front and not when I draw it. I explained to them that it isn’t a Roth — it is a traditional TSP account. The response I got back basically say to pay it up front. If I retire and move to a different state, and start to draw my TSP, will that state legally be able to collect taxes as well? Would that not be double taxation. People at TSP said they don’t get involved with states rules.

A. The income taxes due on your TSP contributions are generally deferred until you withdraw the money. You should hire a CPA to review your returns and figure out what is going on. You are in a dispute with the Pennsylvania taxing authority and you need someone who knows what they are doing to represent your interests.


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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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