Q. I will be 54 this year, a FERS employees with a minimum retirement age of 56. I am taking early retirement and leaving the end of July with 32 years of service. What can I do to avoid the 10 percent TSP early withdrawal penalty if I want to start withdrawing this year or early next year? A. If you’re not fully disabled or have huge medical expenses, you’ll need to either take a series of Substantially Equal Periodic Payments as allowed under IRS code section 72t or use your funds to purchase a life annuity. You should consult…
Monthly Archives: August, 2011
Q. What is the best location to place your funds in TSP during this debt ceiling fiasco? A. In a diversified allocation that support your retirement goals with a minimum of risk.
Q. I will be 55 in August and plan to retire in January after 22 years’ law enforcement service, two years’ military service, plus three years’ other government service, approximately 27 years’ total government service. All my debt will be paid in November. I would like to take a partial withdrawal from my TSP, $40,000 of the $120,000 currently in my TSP account. If I understand what I’ve been reading correctly I will not be subject to the 10 percent withdrawal penalty correct? Am I required to repay the $40,000 that I withdraw and will I have to claim it…
Q. I retired under CSRS with $29,000 in G Fund. What is a wise strategy to roll it over for future education for a 7-year-old? A.I don’t know why you’d roll it over. Why not just keep it in the TSP until you need it?