TSP withdrawl request


Q. I recently submitted paperwork for a partial withdrawal of my TSP account (I am separated from federal service). I submitted this paperwork with guidance from a certified financial planner and after several phone calls to TSP. I wanted $240,000 rolled over into another retirement vehicle. TSP only sent them $112,000 — taxed the balance and sent me a check. When I called them they said their was nothing I could do now since the money had already been disbursed. I haven’t even received the check yet. What recourse do I have? I do not want to withdraw this money nor pay an early tax penalty. I am currently 57½ years old, and I need the taxes restored and the entire $240,000 sent to the IRA I designated on my paperwork.

A. You could deposit $128,000 to the IRA within the 60-day rollover window as a rollover from your TSP account, in addition to the $112,000 already sent. You will recover the tax withholding when you file your 2015 tax return. In any case, you should engage a CPA to help you figure this out.


About Author

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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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