Unauthorized TSP distribution

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Q. An apparent clerical error caused an unauthorized distribution of TSP funds paid directly into my bank account (direct deposit via DFAS payroll). The only option I’ve been given is catch-up contributions to return the funds. I was told I would need to make up the income tax withholding to get all the funds back in. Are there any other options I could pursue?

A. This is a legal question. I recommend you start by engaging a good CPA or tax attorney to work the problem.

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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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