Re: Taxation of TSP Distribution in a Divorce Settlement
When he withdraws the money, he is subject to a withdraw penalty, barring a QDRO exception. At that point, the money becomes "his cash". If he buys out your interest in the home with "his cash", to you, it is only cash. You can only invest it in an IRA to the limitations of your yearly contribution limit. You buying a house, does not negate his taking "his cash" because when you buy the house with the settlement, it is "your cash".
With enough thrust, pigs fly just fine.
You may believe that you understood what you think I said. I'm not sure you realize that what you heard is not what I meant.