Q: I expect to retire around the middle of 2010 at 65. I will be using my Thrift Savings Plan savings to supplement my Social Security and my Federal Employees Retirement System pension. I understand that I may leave my money in TSP and take monthly withdrawals from the TSP starting in January. I also believe there is a one time withdrawal that I may make to tide me over between July 2010 until January 2011 when the monthly withdrawals start to kick in. I want to confirm that I may do so without jeopardizing my receipt of monthly withdrawals from the TSP. I also want to confirm that this would be my only chance to access any needed funds over and above the monthly withdrawals if I leave my money in the TSP. Can I roll over my TSP funds into an IRA several years after starting to receive the monthly withdrawals, should I need a sum of money for say medical bills?
A: You may take the one-time partial withdrawal and then initial the monthly payments, which are considered a full withdrawal option. After that, you may elect to change the monthly payment amount once each year and/or withdraw the remaining balance at any time. You may rollover any distributions which are not part of a Required Minimum Distribution to an IRA.
— Mike Miles
