Buying a home with thrift funds


Q. I am 66 and plan to retire from the federal government on Dec. 31. Is there any way for me to withdraw a portion of my thrift funds in order to outright purchase a home without taking a really bad hit with regards to income tax?

A. If you haven’t already taken one, you may take an age-based in-service withdrawal while you are still working as a fed, or you may take a partial lump-sum withdrawal after you retire. In either case, the amount withdrawn and not rolled over to any IRA will be added to your tax returns as ordinary income for the year.


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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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