Using non-Roth TSP to pay off mortgage


Q. Federal employee age 58, retiring with 30 years’ service and would like to take $109K from my non-Roth TSP to pay off mortgage. Besides Federal tax, would I also have to pay a 10 % penalty because I am not 59 1/2 years old? Would the federal withhold 20 % tor taxes or would it be more?A. There will be mandatory withholding of 20%, but the early withdrawal penalty will not be assessed. Details are available at


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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 and view his blog at

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