Ask Larry

Can I Pay Social Security Taxes On My Disbursements From The Thrift Savings Plan?

Hi Larry
Im 58 this year and plan to take a postponed retirement next March 1 for 18 months. I’ll retire from the USPS with 22 years at age 60. If I delay my Social Security until FRA at 67 can I pay social security taxes on my disbursements from my TSP?

Thank you,
Susan

Hi Susan. No. People aren't allowed to voluntarily pay Social Security taxes on non-covered income, and disbursements from the Thrift Savings Plan (TSP) are not subject to Social Security taxes. Only net earnings from self-employment and Social Security covered wages are subject to Social Security taxes.

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Best, Jerry

Posted: 
Mar 17 2022 - 11:29am
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