TSP Withdrawal Tax Strategy
Traditional vs. Roth TSP taxation, partial withdrawals, installment payments, single-sum distributions, and the tax mechanics of TSP-to-IRA rollovers.
— For Federal Employees
Built for federal
employees & retirees.
The federal compensation system is not the same as the private sector — and the tax treatment of TSP, FERS, CSRS, the Special Retirement Supplement, and Social Security with WEP/GPO offsets has nuances most general practitioners miss. H. Elliot Associates brings specialized knowledge of these benefits to every retirement and tax conversation.
Through every season of public service — steady or uncertain — careful planning is what keeps a federal career on course.
— Who We Serve
- Current federal employees evaluating retirement timing
- Recently retired federal employees navigating their first 1099-R
- FERS, CSRS, and CSRS-Offset annuitants
- Foreign Service Officers and overseas-posted personnel
- USPS and Postal Service employees
- Active-duty and recently separated military preparing for the civilian tax world
- Federal contractors transitioning to W-2 federal employment (and back)
Why this niche
The questions that confuse most CPAs.
"Should I keep my Traditional TSP, or roll it to an IRA at retirement?" "How is my Special Retirement Supplement taxed if I take a part-time consulting gig?" "Will WEP reduce my Social Security?" "I'm moving from DC to Florida — when does the residency change actually count for state tax?"
These questions are the daily reality of every federal employee approaching retirement, and the wrong answer can cost five figures over a thirty-year retirement. They require specialized expertise in the federal compensation system, applied carefully to each client's specific situation.
Focus Areas
Six topics we know cold.
FERS & CSRS Pension Taxation
How the federal basic benefit is taxed in retirement, the Simplified Method recovery of your contributions, and the interaction with state-of-residence rules.
Social Security with a Federal Pension
How the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) interact with CSRS, mixed federal/private careers, and spousal benefits.
Special Retirement Supplement (SRS)
Taxation of the FERS SRS for those retiring before age 62, the earnings test, and coordination with eventual Social Security claiming.
Overseas & Foreign Service Tax Planning
State-of-legal-residence questions, Foreign Earned Income Exclusion eligibility, post differentials, and the tax mechanics of returning stateside.
Military Service Credit (Buyback)
Tax treatment of military service deposits, the deductibility of interest, and how the buyback decision affects FERS/CSRS pension calculations.
Engagements focus on planning, taxation, and the tax mechanics of federal-employee benefits and decisions. They do not constitute investment advice or the recommendation, selection, or management of securities.
"There's a real difference between reading about the federal compensation system and having spent years inside it. That's the difference we bring."
Harold Hodges · Founder
Bring your federal benefits questions.
A 30-minute introductory consultation, at no cost. Bring your most recent FERS estimate, TSP statement, or a question you've been holding onto — we'll talk through it.