TSP readies for tax season

Monday - 1/9/2012, 5:59pm EST

Tom Trabucco, director of external communications, Federal Retirement Thrift Investment Board

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It's only a week into the new year, but the deadline for filing taxes will be here before you know it.

The Thrift Savings Plan is preparing the resources federal employees and retirees will need as tax season approaches.

Tom Trabucco, the director of external affairs at the Federal Retirement Thrift Investment Board, which oversees the TSP, joined In Depth with Francis Rose to discuss the timeline feds need to know.

Federal employees who withdrew from their TSP accounts over 2011 will be issued an IRS form 1099-R. That form will be mailed by Jan. 31 and will also be available online.

The TSP website also points out that in 2012, employees can contribute as much as $17,000 in tax-deferred money to the TSP — even more for members of the uniformed services. Those who are 50 or older may contribute $5,500 in "catch-up" contributions if they expect to reach the $17,000 limit in 2012.