Age-based withdrawal


Q. Would it be wise to take an age-based withdrawal from TSP to pay off/down credit card debt before retirement?

A. I generally tend to prefer that people repay their way out of debt from their current income, since this helps to prevent them from living beyond their means. In certain circumstances, though, it could be the smart thing to do. For example, if there is no reasonable possibility that you can repay the debt from earned income, then I think that tapping your TSP to payoff credit card debt is better than defaulting on your obligation to repay the money you borrowed.


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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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