TSP Issues Payments, Wants Them Back

By Brian Kalish

The Thrift Savings Plan mistakenly mailed out payments, some over $10,000, to nearly 10,000 people. Now it wants the money back.

About 9,700 of the plan's 4.4 million participants were "erroneously issued notices and payments regarding minimum distributions for participants over age 70½," said agency spokesman Thomas Trabucco, The Washington Post reported late Monday.

Those who received the money were eligible to get it in the future, but for now the TSP is asking them to return it.

Recipients can choose to keep the money, but they'll have to pay taxes on it. "It's their money," Trabucco told the Post.