TSP payouts


Q. I understand TSP does not withhold state taxes from periodic payments, but what I don’t understand is how those state (Ohio, specifically) taxes get paid. Does that mean I will have to pay estimated tax four times a year?

A. You should consult a tax accountant in your state for guidance. Most likely, you’ll make estimated tax payments as the income is received and then pay any balance due with your 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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