Unauthorized Distribution

[longwood89]

Last December someone somewhere screwed up and gave me a distribution from my civilian TSP account that I did not request. Around $15,000 was taken from my TSP account, a few grand was sent to the IRS for federal taxes and the rest was deposited into my bank account. It took three months to fix that fiasco.

Well, they have done it again. This time for more than $62,000! Of that, more than $16,000 has been sent to the IRS; the remainder was deposited in my bank account along with my paycheck.

I have never asked for a distribution from my TSP. Has anyone else experienced this? What can I do to fix this quickly and ensure that it never happens again?

 

[Sunnyskies]

I don't have an answer for you; however, I hope that you are able to find a contact within TSP and insist that they trace the request back to the source. Until you are able to find the source of the transaction, you can't fix it permanently. What a nightmare. What will they do to make you whole? Did they reimburse you for lost earnings on those $$ last time?

If your agency has an IG or inspector type, I'd consider going to them and ask that they begin an investigation for you. They might have more pull to get to the bottom of it.

Good luck to you.

 

[Wildboar53]

Don't suppose you got the money back from the IRS either. 16K is a big chunk to lose investment wise.

 

[oreo]

I hate to say it but I think you need to think about contacting an attorney who specializes in this type of thing who can document what has happened to you in writing and certified to the proper authorities. I think this is the only way you can protect yourself and ensure this doesn't happen again. Hope this helps.

Good luck.

 

[BlueMax]

There is one question that should be asked first;
Are you retired and if so have you been retired for more than 12 months.

If the answer to both of these questions is yes, there is a mandatory IRS requirement for withdrawal that TSP has a legal obligation to meet with or without your consent.

 

[nnuut]

There is one question that should be asked first;
Are you retired and if so have you been retired for more than 12 months.

If the answer to both of these questions is yes, there is a mandatory IRS requirement for withdrawal that TSP has a legal obligation to meet with or without your consent.

I believe that comes into effect when you reach the age of 70 1/2? Mandatory Distribution.

 

[vic]

Unless you are still working. He said along with his paycheck. Something is not right.

 

[Sunnyskies]

I don't know of any mandatory distributions before 70.5. I've been retired more than 2 years and nothing like that has happened.

 

[longwood89]

I'm not retired. I've had no break in my employment. I'm only 37 years old. I can't think of any reason why this would happen once, more less twice.