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".
Teach a man to fish, you feed a village. Give a man a fish, the ever growing village demands free fish. We will now spend trillions on social services and SSI for people who don't know how to fish.