Q. I am a 41-year-old active duty military member with 24 years of service, retiring in 15 months. I am debating whether or not to apply for a financial hardship withdrawal from my TSP. As all too common in the military, my family and I moved from our house in one location to our new duty station. The home in the first location did not sell, so we rented. When we had issues with two separate tenants, we had to pay our mortgage and our rent. This double payment quickly depleted our savings. When we moved back to the home,…
Browsing: early withdrawal penalty
Q. I retired as an air traffic controller in 2013 with 28 years of service at the age of 48. I am looking at my options for TSP withdrawal. I am now 52 years old. Am I still limited to the Life Expectancy method or have the new rules changed options for me?
Q. I plan on retiring at the end of 2019. At that time I will have over 30 years of service and be over my minimum retirement age (MRA) at 58 years old. My question is, if I meet the MRA and years of service requirement, can I withdraw from TSP prior to turning 59 1/2 without penalty?
Q. I hope to retire at the end of this year. I have 33 years in the U.S. Postal Service and will be 56. I understand there is no early penalty for TSP withdrawals for USPS employees. I live in New York. Is there a rule about withdrawing money from the TSP without an early penalty before 59½ years old?
Q. I will be retiring from the U.S. Postal Service in September after 30 years. I started Roth deposits in my TSP in 2014. I know if I withdraw before five years (Jan. 1, 2019), the interest portion from the Roth part will be taxable along with the conventional part. If I withdraw monthly before Jan. 1, 2019, will the interest in the Roth portion become tax-exempt after Jan. 1, 2019, or do I have to wait until Jan. 1, 2019, to start withdrawals to keep the Roth portion tax-exempt later on?
Q. I am a full-time federal technician in the Air National Guard. I am 54 years old with 33-plus years of military time and 27-plus years as a federal technician (under FERS). I have recently been involuntarily separated from the Air National Guard. This means I am losing both my full-time technician position as well as my part-time military position. I understand that I will be able to draw my FERS retirement (based on my total federal time) along with the Federal Retirement Supplement. Based on my involuntary separation, am I able to start drawing from my TSP without penalty?
Q. I will be 57 years old in August, and already have 32 years of service. I am a FERS employee. Do I have to be 59½ to get penalty-free withdrawal from TSP, or am I good at my minimum retirement age + 30 retirement?
Q. I am about 10 years from retiring from the federal government and would like more information on Medicare and Social Security. I was thinking about not taking my Social Security until I am 67 years old. My friend said she is applying for hers as soon as she is eligible (62). How do I determine which age is best for me? Are there comparison charts that will show me approximately what my overall benefit would be if I applied for social security at 62 versus 67?
A. I was looking for some information regarding VERA and what effects it will have on benefits including TSP. I heard that you cannot withdrawal from TSP until age 55 without penalty. I was also told when I called the TSP helpline that even with a VERA, if you leave before age 55, you cannot withdrawal from TSP until age 59½ to avoid penalty. Does anyone know if what I was told is correct? I find it hard to figure things out with the TSP publications available. And you never know if the person you spoke with really knows. Can you…