Ask Terry Questions Thrift Savings Plan – COVID withdrawal

Thrift Savings Plan – COVID withdrawal

By Terry Savage on August 20, 2020 | Wild Card

If someone takes a withdrawal based on the offering due to COVID will they need to pay taxes on that money?
This is not a loan but a withdrawal.

Terry Says

Yes, all withdrawals are taxable income. But in most cases the 10%early withdrawal penalty (under age 59-1/2) is suspended.

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