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Hello and thank you for using Just Answer,Unfortunately, a distribution from your TSA plan would not qualify as a lump-sum distribution. This means you cannot use the special 10-year tax option to calculate the taxable portion of a distribution, which is what your TSA conversion would imply. Had you decided to do this in 2010, you would have been allowed to spread the tax over 2 years rather than just the conversion year. I wish I could tell yo that you would not be taxed on the earnings all in the conversion year but the rules would not allow that.