Q. I will be 57 in 2015 and will have 34 years under FERS. I have a large balance in the ROTH IRA account in my TSP. If I retire before 59-1/2, will I be taxed on the money I withdraw from my TSP? I have $600,000 in the 401K and $300,000 in the Roth. I plan to leave the money in the TSP and take out $30,000 per month.
A. Since you will be retiring during or after the calendar year in which you reached age 55, your subsequent TSP withdrawals will be exempt from the early withdrawal penalty.
