Q: I am 57 years old and I have 34 years of service, including 21 years of active duty in the Navy. I have already paid my military deposit amount in full. My Thrift Savings Plan account has $200,000 in it. If I retire next year, can I get half of that amount in lump sum, and can I invest the remaining $100,000 in an annuity? If I can, when would I start receiving the annuity?
A: Yes, you may request a partial lump-sum withdrawal, if you have not already done so, and then later request a full withdrawal as a life annuity. Your first montly annuity payment should be received within two months of your request as long as the request is complete and there are no problems.
TSP split between annuity, lump sum
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I currently have a TSP loan that is scheduled for full repayment in 4 years. However I may retire in two years. If I don’t repay the TSP loan in full before I retire, I know that TSP will reduce my account by the amount of the loan balance and I will be taxed on it. Does that amount count as a lump sum payment or can I get a lump sum payout in addition?