Monthly withdrawals


Q. I wonder if this plan is viable. I retireg in a couple years with 10 years FERS service and around $200,000 in my TSP. I will be 65 at retirement, but don’t plan to collect Social Security until age 66. My plan is to take a one-time withdrawal of around $50,000 to pay off my mortgage. Following that, I plan to start monthly withdrawals at a rate equivalent to my upcoming Social Security income. When the Social Security payments start, I plan to reduce the monthly TSP collection to a nominal amount until I have to start taking the mandatory amount when I pass 70 and a half. The question here is whether the annual change in monthly withdrawals could go from $2,500 per month to something like $10 per month for a couple years.

A. You many change the monthly payment amount once each year in January, but the minimum monthly withdrawal is $25.


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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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