TSP 1099-R Form Update
The Thrift Savings Plan (TSP) has mailed IRS Form 1099-R to participants who received a withdrawal up to December 29, 2020. NARFE has received several messages from members who are concerned that the 1099-Rs are incorrect based on the option afforded under the CARES Act to suspend required minimum distributions ((RMDs) for 2020.
If you received a RMD from your TSP account in 2020, the TSP is required to report the income and send a 1099-R, even if the money was rolled back or repaid to the account as allowed by the CARES Act. According to the TSP, you will not receive a “corrected” 1099-R. If you received a RMD that was eligible for rollover in 2020 and you repaid it or rolled it over by the deadline, it is not taxable income. TSP recommends contacting the IRS or your tax adviser for instructions and additional information on the tax filing.
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