tax on TSP distribution

[dubeiram]

Hi all new to TSP talk,, wish I had found this sooner.. anyway question is I am CSRS and contributed to the TSP while living in NJ until 2010..now NJ DOES tax TSP contributions.. moved to CA and CA DOES NOT tax TSP contributions... so approx. 160k of my TSP contributions are from NJ, already subject ot state tax and about 33k from CA contributions.. now the question is I already paid state tax on the vast majority of my TSP contributions in NJ.. now that I plan to withdraw in CA.. in a tax derffered state they are going to look to tax all the $$ coming out of the TSP even though most of it has been subject to state tax in NJ.. so am I screwed or is there sometihng to protect these types of withdrawls from double taxation???

 

[nnuut]

Hi dubeiram, welcome to the message board.
Let's see, the TSP contributions are subbmited to the fund before all taxes no matter where you are. What is important is how much tax you have to pay when you withdraw money from the fund, doesn't make any difference which state you were in when you paid into TSP, unless you are talking about the ROTH option.
Best of luck
Norman