Q. I am retiring May 1. I want to pull some of my savings in TSP for a line of credit on my home to send my child through college (she graduates May 6) and to pay off the rest on my home so I will be secure as a single mom. I want to use the rest for an annuity. How much will taxes be for the withdrawal?
A. While your withdrawals will be exempt from the early withdrawal penalty, every dollar you withdraw will be added to your tax returns as ordinary income.