TSP early withdrawal


Q. I am 62 years of age and have been in civil service for 12 years. Can I withdraw a portion of my Thrift Savings Plan funds prior to retiring and leave the rest in? If so, I realize I will have to pay tax on the amount withdrawn (but not sure how much), but will I have to pay a penalty?  Also, can you direct me on where to go to do a withdrawal? I am currently in Okinawa working for the Marines.

A. You may take one age-based, in-service withdrawal, which will not be subject to an early withdrawal penalty. Everything you need to know can be found at www.tsp.gov (https://www.tsp.gov/planparticipation/inservicewithdrawals/basics.shtml)


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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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