TSP withdrawal


Q. I am 64 years old with 27 years of federal service and will retire in two years (FERS). I want to withdraw $50,000 now to help out my kids. When I retire can I make a lump-sum withdrawal? Can I make another withdrawal when I retire? If I took a lump sum I would probably invest most of it. What options do I have with my TSP money at age 66 when I retire after I withdraw money at 64?

A. You are only allowed one partial lump-sum withdrawal during your lifetime. After that, your only option is a full withdrawal, but a full withdrawal can include a part of your account as a single payment and the rest as monthly payments and/or an annuity. See forms TSP-70 and TSP-75 for your options.


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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