Q. I will be retiring at age 57. I will be taking monthly payments from TSP at that time. I understand after monthly payments are started, the only other option left is a full withdraw. If I take monthly payments until age 59½, can I then roll over the balance into an IRA? Flexibility in withdraw choices is my goal. Is rolling over into an IRA still considered a full withdraw, and is this possible?
A. This is allowed. You’ll file form TSP-70 to request the monthly payments and then file form TSP-79 to request the final withdrawal and rollover. I think it’s a shame to entirely give up your TSP account and its unique advantage. A little advanced planning should allow you to avoid having to do this. Why not roll over a partial lump sum to an IRA in the beginning and then use fixed-dollar monthly payments to keep this cash fund topped up as you go?
