'Applicable' taxes and early TSP withdrawal


Q. I am 22 years old with four years of service and would like to withdraw early from my Thrift Savings Plan. I know I will be charged 10 percent in early withdrawal fees, but how much will the “applicable taxes” be?  I am an Alaska resident, if that makes any difference.

A. The only way to know what you’ll ultimately pay in taxes is to prepare your tax return for the year of the 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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