Withdrawing TSP money


Q: I am a retired postal clerk with FERS. I have money in my TSP. I am 57 and I called someone at TSP to ask if I can take a partial amount of my money now without getting penalized. They said I can do it only once. Is this true?

A: You are only allowed one partial lump-sum withdrawal from your TSP account. That’s a TSP rule. Whether your withdrawal is subject to the early withdrawal penalty is a matter of law. Once you have taken a partial lump-sum withdrawal from your TSP account, your only withdrawal option is as a series of monthly payments or a full lump-sum withdrawal.


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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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