Q. I am an FAA air traffic controller with 27 years of service. I was wondering about the age 55 rule for a one-time withdrawal of TSP funds without penalty. If I retire at age 53, can I take out a lump sum when I turn 55, or do I have to work and retire the year I turn 55 to do this? If so, how much money can be taken out without penalty. I also was wondering if I worked till mandatory retirement age, and get forced out, can I still get the one time lump-sum withdrawal without penalty…
Yearly Archives: 2012
Q. I’m a federal law enforcement officer and I’ll be retiring in March after 25½ years of creditable service. I intend to take my Thrift Savings Plan funds when I retire and receive monthly payments based on my life expectancy. I understand this life expectancy option and an annuity are the only ways I can eliminate the IRS 10 percent penalty for early withdrawal since I’ll be 53 when I retire. The TSP manual (on page 16) states I have a one-time opportunity to switch from the life expectancy payments to specific dollar amount payments. I called the TSP representative…
Q. I am planning on retiring from the Federal Employees Retirement System in five years at my minimum retirement age. I consider myself a long-term buy-and-hold investor and have accumulated the following assets from regular investing at opportunistic times over 25 years: TSP ($250K) + max annual contributions in C fund, USAA Strategic Advisor Fund ($100K) and International Fund ($150K), First Command Roth IRA Destiny Fund ($150K), CDs and Money Market ($250K), Gold Fund ($50K). Is there any advice you could give me to shift my assets to best protect my investments for that five-year mark? I feel I am pretty…