TSP withdrawal strategy


Q. I have heard that some people are taking a monthly Thrift Savings Plan withdrawal that will have all funds sent to them over a period of 119 months (less than 10 years). Looking through TSP manuals, I haven’t figured out why yet. What are the advantages/disadvantages for this strategy?

A. Check Page 3 of the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf. Payments expected to last less than 10 years are eligible for rollover but subject to 20 percent mandatory withholding. I’m not sure that the advantage is.


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.

Leave A Reply