Browsing: Tax

Q. The state of Hawaii does not tax social security and government pensions and annuities. If I purchase an annuity through TSP with my TSP balance when I retire and begin receiving lifetime income, is this considered a “government annuity” and therefore not subject to Hawaii state income tax?

Q. My RMD for 2016 was withdrawn March 2017 and my RMD for 2017 was withdrawn in April and December 2017. My 1099-R reports the total of the RMDs with no distinction for how much was for 2016 and for 2017. Am I supposed to use Form 8606 for the TSP RMD? Form 8606 asks for the value of the IRA on Dec. 31, but I have two values (one for 2016 and one for 2017). Also, if TSP is not an IRA, what is it? Is there another form to put this info?

Q. I plan on retiring from 33 years of federal service with the Department of Defense. I have $1 million in my TSP and want to convert some of it each year to a Roth account. After retiring, I expect my taxable income to be about $100,000 per year. After retiring, if I transfer $50,000 per year from my TSP to a Roth account, what will my tax rate be?  Note: I’m assuming the federal tax rate between $77,000 and $165,000 is 22 percent, for over $600,000 is 37%. Would I be taxed 22 percent on the $50,000, since $100,000 +…

Q. I am a federal dual-status technician with the LA guard. I am 50 as of March 2018 and will have 28 years federal technician time on Sept. 22, 2018. Can I voluntarily retire and draw my FERS retirement, the supplement and my TSP  without being penalized the 10 percent? My actual minimum retirement age is 56 years and 8 months.

Q. My husband after 33 years of marriage has decided on a divorce. He is 63 and I am 61. He has a TSP. I will be receiving 50 percent as part of the divorce settlement. Will I have to pay tax on my share upon distribution or can I roll over my portion into an IRA? I do not have a 401(k). If I have to pay tax, would it benefit me and lower my tax penalty to take a portion over a series of years?

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