Q. I retired as an air traffic controller at age 50 in 2008. In order to take money from TSP, I had to do it based on life expectancy. Now at 57 I want to make a one-time withdrawal. I’m being told I will not be able to do this for some reason (which is not clearly stated anywhere). Why is this? Where is it stated I cannot make a withdrawal? What are my options now?
Browsing: early withdrawal penalty
Q. I have been out of the service now for over two years and have about $25,000 in my TSP account. I am in the process of buying a house and was considering closing my account to help with the cost. What would the penalties be for California, and would this be a terrible financial decision?
Q. I am looking at retiring next year, during the year that I turn 55. I qualify under the law enforcement officer firefighter provision. I would like to make a 100 percent withdrawal from my TSP. I am aware that this would put me in the 33 percent tax bracket, but would I be subject to the 10 percent tax penalty for early withdrawal?
Q. I am eligible to retire next year at age 50 as a law enforcement officer under FERS. I plan on taking life expectancy payments from my TSP/401(k) as soon as I retire. If, upon retirement, I elect to transfer my TSP balance to a company like Vanguard, will I still be able to withdraw life expectancy payments from Vanguard and avoid the 10 percent early withdrawal penalty?
Q. The early withdrawal penalty is obviously different from taxes; so for Roth, if you take withdrawals during or after the calendar year you turn 55, you won’t be subject to the 10% early withdrawal penalty, but you will owe taxes on the Roth earnings? If yes, can you choose to take your withdrawals from the Traditional balance until you turn 59 1/2 and then start taking them from the Roth at that point in order to avoid the tax on Roth earnings?
Q. I will retire under the law enforcement FERS category at 52 with a $400,000-plus balance. Can I take out a $100,000 lump sum at retirement without a penalty and then roll over the rest into a personal IRA?
Q. My brother works for the U.S. Postal Service. He requested and received a distribution of $30,000 from his TSP account in 2014, before he turned 59 1/2. Accordingly, he will be taxed for IRS purposes and get hit with the 10 percent early withdrawal penalty. That I know. He lives in New Jersey where TSP contributions are not excluded for N.J. state income tax purposes. The question is as follows: Is the $30,000 distribution from his TSP taxable in full for NJ state income tax purposes? If so, seems like double taxation.
Q. You have answered a question of mine previously that when I reach MRA (age 56) with 36 years of service I will be able to withdraw TSP without an early withdrawal penalty. That’s fine, but I read a post about an individual who was under the firefighter/ law enforcement retirement criteria and would be subject to early withdrawal penalties up until age 59 ½. I’m a little confused; if I have met MRA but am under 59 ½ how do I not get a penalty and they do, when they have met the criteria for FF/LEO/ATC retirement?
Q. I will be 57 in 2015 and will have 34 years under FERS. I have a large balance in the ROTH IRA account in my TSP. If I retire before 59-1/2, will I be taxed on the money I withdraw from my TSP? I have $600,000 in the 401K and $300,000 in the Roth. I plan to leave the money in the TSP and take out $30,000 per month. A. Since you will be retiring during or after the calendar year in which you reached age 55, your subsequent TSP withdrawals will be exempt from the early withdrawal penalty.