TSP withdrawal and income


Q. I am a CSRS retiree. Is a lump sum withdrawal from my TSP considered as earned income? Will it effect my Medicare premium amount for the next year?

A. No, distributions from your TSP account are generally not considered earned income and, yes, TSP distributions will count as income when computing your Medicare Part B Income Related Monthly Adjustment Amount, which are based on the modified adjusted gross income reported on your IRS tax return.


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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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