Q. My wife and I are both 56-year-old retiring U.S. Postal Service FERS employees with over 30 years service. We each want to take a small lump withdrawal from our TSP and also receive monthly payments (not based on life expectancy). Will we be subject to an additional 10 percent penalty tax?
Browsing: early withdrawal penalty
Q. My spouse is a U.S. Marshal retiring at age 51 with 28 years of service retiring next month. The question he has had a hard time getting answers to is transferring his TSP to an IRA and receiving monthly payments. He would like to transfer his TSP to an IRA to maximize his investment options, but is concerned if he takes immediate withdrawals that he will be forced to pay a penalty in addition to taxes. Is TSP the only option to taking immediate withdrawals before age 59.5? Can immediate withdrawals at 51 be made at firms such as…
Q. I was wondering if I would have to pay the 10 percent penalty to make a partial withdrawal from my TSP to pay off my mortgage. I’ll be 56 years old with 32 years of federal service when I retire.
Q. Can I separate the federal service at 45 years of age (firefighter) with 20 years of creditable service (+4 years military by back) totaling 24 years of service. Then later apply to draw my FERS firefighter retirement of 38 percent when I reach the eligible firefighter retirement age of 50? Would I still receive my Social Security supplement and Thrift Savings Plan benefits without penalties?
Q. I have been out on workers’ compensation since 2010 and am now in a dire financial situation. From reading some of the rules from the Thrift Savings Plan handbook, it says that I have to be separated in order to withdraw part or all money from my account. Would I be able to withdraw a portion while receiving workers’ compensation benefits?
Q. I am a federal air technician with the Air National Guard. I have been a federal full-time technician since June 10, 1991. I bought back my Air Force active duty time from 10 Dec 86 – 9 Mar 91. I am in FERS and have a minimum retirement age of 56 years and 2 months. I will be 53 next year. It has been communicated to me that I will probably not be retained next year, meaning that May 13, 2019, I will be involuntarily retired, thus losing my full (technician) and part-time (traditional Guard) employment. I will be four months shy…
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,…
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?