Penalty on TSP in divorce

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Q. In our divorce settlement, my wife wants to have her marital share available to spend on housing. What would the total penalty amount on her portion be?

A. If there’s no exception for a court order, an early withdrawal will generate a penalty equal to 10 percent of the earnings withdrawn. Consult a tax accountant for advice.

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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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