How will an employees TSP benefits be taxed?
A. All of the money from an employees TSP account will be taxed as ordinary income for Federal tax purposes in the year (or years) that the employee receives it. FOR DETAILED INFROMATION REGARDING THE TAX CONSEQUESCES OF TSP WITHDRAWAL CHOICE AND TAX WITHHOLDING REQUIREMENTS, REFER TO TAX NOTICE, IMPROTANT TAX INFORMATION ABOUT PAYMENTS FROM YOUR TSP ACCOUNT, FOUND ON THE TSP WEB SITE AT WWW.TSP.GOV.
