Unauthorized TSP distribution


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.


About Author

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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