Timing of TSP withdrawal


Q. I am thinking of retiring soon and am considering taking a one-time post-retirement withdrawal from my Thrift Savings Plan to cover some debts so that I can live on my annuity.  When requesting such a withdrawal, do you have to be retired both on the day it is requested and the day the money is disbursed, or can it be requested a few weeks before my last day assuming it will take some time to process and so I would not get the money until after I am already in retired status? I realize that we are probably only talking a couple of weeks’ difference, but my understanding is that it can take a couple of months to begin receiving the pension checks.

A. You can submit the form in advance and the distribution will be processed as soon as the TSP receives notice of your separation from your agency.


About Author

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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