Thrift Savings - Alabama Income Tax

Feb 13, 2008 1 Replies

An easy one for Harlan:



Form 40 instructions show "U.S. Government Retirement Fund Benefits" to be non-taxable. Do post-age 55 retirement distributions from the Federal Thrift Savings Plan qualify as non-taxable in Alabama under this or any other exclusion?


Nope.

TSP contributions are pre tax, similar to 401k and IRA, etc, so withdrawals for a resident are taxable.

Remember, the TSP is not a US government retirement fund per se, but elective deferrals.

ChEAr$, Harlan

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