TSP taxation in NYS

Submitted by raymond kregor on Wed, 2022-03-23 22:20

My traditional IRA is subject to the $20,000 NYS exclusion for an RMD. TSP distributions are not taxed in NYS. The TSP allows transfers to it. Can I transfer traditional IRA funds into the TSP and retain the entire TSP RMD being free of NYS tax.? The TSP balance would be mixed since the IRA funds were outside of federal employment.

Thanks



Submitted by Alan - IRA critic on Thu, 2022-03-24 01:41

You might check with a NYS CPA. NYS Pub 36 does not appear to be regularly updated and simply states that TSP distributions are NYS tax free. That would include amounts rolled in from IRAs, 401k and other plans unless otherwise stated.

Submitted by raymond kregor on Thu, 2022-03-24 15:31

Thanks!!!   As you  said “unless otherwise stated”.   Obviously, if I did NOT have a TSP an IRA RMD portion above $20,000 would be subject to NYS taxation.

Submitted by raymond kregor on Thu, 2022-03-24 15:31

Thanks!!!   As you  said “unless otherwise stated”.   Obviously, if I did NOT have a TSP an IRA RMD portion above $20,000 would be subject to NYS taxation.

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