TSP withdrawal


Q. I am retiring by the end of this year at the age of 56.  I read in the Thrift Savings Plan where you can take a one-time withdrawal payment. Do you have to pay a penalty? Do you have to take it at the end of the year? For example, if I retire in December 2011, will I have to wait until December 2012 to take the one-time withdrawal? Can I take a withdrawal as early January or February 2012?

A. Once you’ve retired, the partial withdrawal is available immediately.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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