Monthly Archives: May, 2014

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Q. When I first opened my TSP savings account back in the late 1990s, no one ever briefed me that there would be a specific retirement age attached to my account. I will be retiring in a year. I will have a total of 28 years of active federal military service. I will be 48 years of age at retirement. Will I have to pay a penalty to withdraw all of my money from the TSP? If I have to pay a penalty, what is it?

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Q. What is the minimum age I can begin taking withdrawals from my TSP account? And what is the tax/penalty I will incur? I intend to retire from Department of The Air Force with MRA +10 (15 years civil service). A. While you are employed, you may take a TSP loan or a financial hardship withdrawal at any age, or an age-based withdrawal after you reach age 59 1/2. Once you separate from service, you may withdraw your TSP money at any age, although the 10 percent early withdrawal penalty may apply if you don’t meet one of the exceptions…

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Q. I am 73 years old and still working for a VA Medical Center. Are there any changes in the rules regarding my TSP account? I was recently reading something about receiving minimum distributions from my TSP account. Does this pertain to me since I am still working? A. The distribution requirements will not apply to your TSP account until you have separated from federal service. See the notice at https://www.tsp.gov/PDF/formspubs/tsp-775.pdf.

Q. I am scheduled to retire in November. I am firefighter with 32 years, 6 months of service. I am covered under FERS. I plan to elect the TSP option that will provide me a monthly payment until my death. Do you know if the monthly direct deposit will combine all three (annuity, annuity supplement and TSP) as one payment, or should I expect three separate payments? A. At least the TSP will come as a separate deposit.

Q. Prior to the TSP coming into existence, I was doing a yearly IRA deposit. I can retire at anytime with over 80 percent of my high three. So, would it be prudent of me to roll this IRA into my TSP account? A. Yes.

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