Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Q. I have 36 years of federal service. Can I take out my TSP? A. Yes, if you are at least age 59 1/2 or have separated from federal service.
Author Mike Miles
Mike Miles
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.
Q. What is the minimum age I can begin taking withdrawals from my TSP account? And what is the tax/penalty I will incur? I intend to retire from Department of The Air Force with MRA +10 (15 years civil service). A. While you are employed, you may take a TSP loan or a financial hardship withdrawal at any age, or an age-based withdrawal after you reach age 59 1/2. Once you separate from service, you may withdraw your TSP money at any age, although the 10 percent early withdrawal penalty may apply if you don’t meet one of the exceptions…
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Q. I am an Air Reserve Technician and 53 years old. I have lost my military requirement at no fault of my own, and now I am being made to retire from the civilian side (FERS). I have a total of 20 years. Can I withdraw all of my TSP from the civilian TSP and if so, what is the early withdrawal penalty and taxes associated with…
Q. I am 73 years old and still working for a VA Medical Center. Are there any changes in the rules regarding my TSP account? I was recently reading something about receiving minimum distributions from my TSP account. Does this pertain to me since I am still working? A. The distribution requirements will not apply to your TSP account until you have separated from federal service. See the notice at https://www.tsp.gov/PDF/formspubs/tsp-775.pdf.
Q. I am scheduled to retire in November. I am firefighter with 32 years, 6 months of service. I am covered under FERS. I plan to elect the TSP option that will provide me a monthly payment until my death. Do you know if the monthly direct deposit will combine all three (annuity, annuity supplement and TSP) as one payment, or should I expect three separate payments? A. At least the TSP will come as a separate deposit.
Q. Prior to the TSP coming into existence, I was doing a yearly IRA deposit. I can retire at anytime with over 80 percent of my high three. So, would it be prudent of me to roll this IRA into my TSP account? A. Yes.
Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”,”serif”;} Q. I have approx. $270,000 in my TSP account, all in the F fund. When the AGG is up .01, I lose about $100. Why? Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”,”serif”;} A. I suspect you are either seeing the effect of lag…
Q. One of my concerns with respect to withdrawals from the TSP is the inability to choose the fund you are withdrawing from since any money you removed is taken from all current funds in the same percentage as they exist in the TSP account. Ideally I would like a few years’ buffer of expected expenses in the G fund with the bulk of my TSP in equities, so if the markets have a bad year or two I don’t have to lock in those losses and could draw strictly from the G fund until the markets recover. Will a…
Q. My father retired about 18 years ago at age 62. He was in CSRS, but he accumulated about $40,000 in TSP. He is now almost 80 and is near death and says he forgot about his TSP. I’ve been reading about TSP and how you must start making distributions at age 70 1/2. What can my mother do to recover this money? I found a form (TSP-70-A) that my dad might be able to fill out if he lasts another week or so. A. You should review the notice at https://www.tsp.gov/PDF/formspubs/tsp-775.pdf and submit form TSP-70-A on behalf of your father.…
Q. My husband and I owe back taxes to the IRS, and I would like to know if the IRS can deduct what we owe from my TSP. I have a residential and personal loan out through TSP, so I am unable to do that. We owe around $24,000 and would like it deduct from what is in my TSP. They keep telling me they can’t, but I am not sure of that. I would like to get this paid off so in around 7 years I can retire without owing them. If I was able to get them paid…