Q. I left federal service and have $4,019.42 in my TSP account. I requested a
full withdrawal. Will I get the full amount less the 10 to 20 percent that is with
held for taxes?
A. Your payment will be subject to 20 percent mandatory tax withholding.
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.
1 Comment
If you roll the amount into a traditional IRA you won’t be hit with that 20% tax.