Q. I am 56 years old and plan on retiring in October with 35 years of service. I am a civil service employee. Can I make yearly withdrawals from my Thrift Savings Plan with only taxes to pay on it? Or would I be better off taking all of it out and putting it into a bank account? I will need it for the next three years to make my house payment?
A. You may not make yearly withdrawals from your TSP, but you could move your money into the G Fund and then set up monthly payments that are large enough to meet your expected needs. You may change the amount of the payments once each year, in January, and you will not owe early withdrawal penalties on the distributions — only income taxes.