Q: I hope to retire when I turn 56. I have been investing in TSP since 1987, contributing the maximum amount allowed (15 percent). My question is, at age 56, can I set up and annuity with TSP requesting a small amount a month and still receive interest on the amount left in my account?
A: Yes, as long as you haven’t already taken a partial withdrawal. Use a partial withdrawal to purchase the annuity and leave the rest in your account until you need it.