20 percent holdback on loans/withdrawls

[hondas2k]

Trying to get any info on this subject. Have heard of this rule but looking for clarification. Any help appreciated. Thanks.

 

[evilanne]

In what context? A withdrawal or loan from your TSP account or something else?

 

[hondas2k]

In what context? A withdrawal or loan from your TSP account or something else?

Need to know. From TSP account regarding loan or withdrawal or both. Thanks.

Sent from my LG-TP260 using Tapatalk

 

[RazorCat]

If you're referring to federal and/or state income taxes withholding a loan or withdrawal, here's form TSP-70 and the tax information publication with tax tables.
https://www.tsp.gov/PDF/formspubs/tsp-536.pdf
https://www.tsp.gov/PDF/formspubs/tsp-70.pdf

 

[hondas2k]

If you're referring to federal and/or state income taxes withholding a loan or withdrawal, here's form TSP-70 and the tax information publication with tax tables.
https://www.tsp.gov/PDF/formspubs/tsp-536.pdf
https://www.tsp.gov/PDF/formspubs/tsp-70.pdf

Thanks.

Sent from my LG-TP260 using Tapatalk

 

[RazorCat]

Glad to help.
I keep it on file for quick reference.

 

[evilanne]

With a withdrawal, they withhold amount required by IRS based on the situation but no withholding if it is a trustee to trustee rollover to IRA or 401(K). The table at end of TSP 536 publication that RazorCat provided is helpful.

There really isn't a holdback on loans but there are limits on the amount you can borrow based on the amount in your account and never more than $50K.

 

[hondas2k]

With a withdrawal, they withhold amount required by IRS based on the situation but no withholding if it is a trustee to trustee rollover to IRA or 401(K). The table at end of TSP 536 publication that RazorCat provided is helpful.

There really isn't a holdback on loans but there are limits on the amount you can borrow based on the amount in your account and never more than $50K.

Sent from my LG-TP260 using Tapatalk