In-service withdrawal


Q. I am 56 years old and meet my MRA with 31+ years of service for USPS. I’m looking at retiring in February 2016. I went to a retirement seminar, where I was told that I could request a one-time in-service withdrawal prior to separation. There would be 20 percent withholding for taxes. Form 75 states that I must be 59.5 for this to take place, or I could request a hardship withdrawal. If I can take a withdrawal, what form number is it, and where do I find it? Can I take this withdrawal? And what evidence is required to request a hardship withdrawal? How severe a situation must one be in?

A. You have only two withdrawal options prior to separation from service:

1. An age-based withdrawal – use form TSP-75, or
2. A financial hardship withdrawal – use form TSP-76

See these forms and their instructions for the requirements for each type of withdrawal. You’ll find them, along with additional information, in the withdrawals area 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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