Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Thank you for your question, and thanks for using JustAnswer.com. You can roll the entire balance into a traditional IRA
without having to pay income taxes
. All you need to do is to contact the holder of the Thrift Savings Plan and give them the information for your IRA account. They will have a form
to do this. They will send the balance directly to the IRA custodian. You will not owe tax on this amount until you draw it out, so you will still be taxed on the interest just not now - rather when you draw it out of the plan.
Please let me know if you need anything additional. Thanks again for using JustAnswer.com and have a great day.
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.