TSP withdrawals and continuing federal service


A. Is it possible for me to take withdrawals from my TSP after I’m 59½ years old and still make contributions to the TSP while remaining a government employee? If so, what possible issues may arise?

Q. It is possible to take an age-based, in-service withdrawal and continue deferring pay into the TSP. You could also take a loan, instead, or in addition to an in-service withdrawal. A withdrawal is taxable, while a loan is not. Visit https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/inservicewithdrawals/index.html for more details.


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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