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To learn more about Roth TSP balances, see TSP-536 (01/2018), Important Tax Information About Payments From Your TSP Account.

They are paid for a period during which the individual performed services in the uniformed services while on active duty for a period of more than 30 days.

These payments represent all or a portion of the wages the individual would have received from the employer if the individual had been performing services for the employer during that period. You must include in income the excess over this maximum amount. The portion of your QRD reported by your employer as wages on Form W-2, Wage and Tax Statement, is included in your gross income and is taxable.

However, the earnings on the tax-exempt portion of the distribution are taxable.

The TSP will provide a statement showing the taxable and nontaxable portions of the distribution.

They are after-tax contributions and are subject to the same contribution limits as the traditional TSP.

Qualified distributions from a Roth TSP aren't included in your income.

Documentation showing the amount of and reason for your disability severance payment may include your Form DD214, a notice mailed to you by the Department of Defense, or a letter from the Defense Finance and Accounting Services (DFAS) explaining the severance payment at the time of the payment.

In addition to the documents listed above, Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, may need to accompany Form 1040X.

You can still deduct mortgage interest and real estate taxes on your home if you pay these expenses with your BAH.

Differential wage payments are payments made by an employer (other than the Armed Forces) to an individual.

For more details, see The TSP known as the Roth TSP lets you invest in a designated Roth Account through a TSP.


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