Q. I am 58 years old (I’ll be 59 in October 2015) and my separation date was on May 30, 2015, I have two outstanding loans of $16,459.50 for residential purposes and $24,783.93 for general purposes and a Financial Hardship In-Service Withdrawal for $24,000.00 with TSP. I asked for separation because after February 10, 2015 I was in Leave Without Pay (LWOP) due to disability, and eventually in March 2015 I was approved for Social Security Disability, which will not start to pay until September 2015. I have a TSP account balance of $44,107.60 which I am planning to do a one-time withdrawal when the time comes.
Explaining this, if it is possible, I would like to know how the taxable distribution will affect how long before I can do the one time withdrawal and my account balance.
It is impossible for me to pay those outstanding loans? Since February I do not have any income.
A. As far as the rules are concerned, the declared taxable distribution should not affect your ability to take a partial lump-sum distribution from your account. Whether, or not, there will be some administrative delay is a question that only the TSP can answer. I suggest that you post the question to a TSP rep through the ThriftLine.
