Browsing: early withdrawal penalty

Q. I plan to retire May 31, 2017, at 51 years old. I am a federal law enforcement employee eligible to retire at age 50 (I have 22½ years as a law enforcement officer and 26 total years). I need to access my TSP immediately to pay emergency expenses. If I request a hardship withdrawal prior to my retirement date, will I be subject to the 10 percent early withdrawal penalty?

Q. I will be 58 in May. I have a massive credit card bill that is causing me huge amounts of stress, and it is costing me $100 per month in interest. No, I wasn’t frivolous in my spending, I have a disabled daughter who I have been helping out in addition to her two service dogs. Can I take money out to pay off the credit card even though I currently have an outstanding TSP loan? Or can I cancel my loan and use that $300 per month to add to my credit card debt? If I could do…

Q. I am a senior Foreign Service officer and will have 26½ years of service under my belt at the end of my current tour in summer 2018. In the Foreign Service, we are eligible for voluntary retirement if we are at least 50 years of age (I will be 54 by summer 2018) and have 20 years of service. I am considering retiring in the fall of 2018, so just before the year in which I turn 55. My question concerns the TSP. Assuming I retire in the fall of 2018, will I be able to make monthly withdrawals…

Q. I was born Jan. 21, 1980, so I’m currently 37. I turn 57 (my minimum retirement age) in 2037. I have 10 years of AD service, from June 1998-May 2008. I joined the civil service a week after leaving the military and now have roughly nine years of service. I have bought back all 10 years of military service but am still in the Air Guard. The Guard position is not linked to my FERS position. If I retire at age 57, do I suffer any penalties or taxes for pulling before age 59½? Or do I need to follow…

Q. I am a FERS employee with the U.S. Postal Service. I plan on leaving this summer when I’m 58. I have read that I can be less than 59½ years old to withdraw from TSP and not be penalized for early withdrawal, as long as I am completely separated from USPS. Is this true? Also, along with my pension, I plan on with drawing about $1,200 per month from my TSP. Will I be taxed less by taking out monthly amounts than if I took out the entire amount?

Q. I plan on retiring next August at 57 years old. I would like to buy an immediate annuity but do not want to buy the MetLife FERS annuity. Their interest rates for the annuity are extremely low compared to other annuities. When I retire at 57 years old, can I buy another annuity and avoid paying 20 percent upfront tax when buying that annuity? Also, can I get my payments without the 10 percent penalty for not being 59½?

Q. I will be 50 years old in September 2017 and will have more than 20 years of federal law enforcement service. I plan to retire Dec. 31, 2017. I know I must leave my retirement funds in the TSP to qualify for the Public Safety Act’s penalty-free withdrawal options. However, I plan to withdraw about $150,000 from the TSP and start a lifetime annuity with the remaining $400,000. Will the $150,000 and/or the $400,000 withdrawals will be penalized? (I know I’ll have to pay tax, which is fine.) Can I take the $150,000 withdrawal and then a few years later initiate…

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