Q. Recently, legislation known as the Defending Public Safety Employees’ Retirement Act was passed, which would amend the tax law to allow special category employees to withdraw money from TSP accounts prior to age 59½ without incurring the 10 percent IRS tax penalty. I am a military technician with 33 years of service. I know military technicians are special category employees. Would I qualify for this provision?
Browsing: early withdrawal penalty
Q. My 55-year-old husband made a TSP withdrawal in November (paid all penalties, etc.). Now he wants to make another withdrawal. Can he make more than one withdrawal within a 12-month period?
Q. I retired as a federal law enforcement officer with 26 years of service at age 48 in 2015. Then the law was passed to allow those who retire the year they turn 50 or after to make penalty-free withdrawals. I’ve read about the IRS rule of 72(t) option and to me it seems as if — as long as I wait until I turn age 50 and invoke the rule of 72(t) — I should be able to make additional withdrawals without incurring the penalty. Is there an exception for those FLEOs who are allowed to retire with 25 years…
Q. I retired at age 55 under CSRS offset. When I turned 62 I had to start drawing from Social Security. My husband is going to be retiring soon at FRA. Am I entitled to half his Social Security?
Q. I am a military technician and was told I’m under a special military technician early retirement 50/25 and will have 34 years of service, 4 years of which was active duty. I bought back my time and plan to retire in December. I will be 54 years old. If I start withdrawing from my TSP, will I be penalized 10 percent because I’m not 56 years old yet?
Correction: The answer in this post contained the age 50½. It has been corrected to 59½. Q. I am a civil service employee under FERS. I recently retired from the Air Force Reserve. Is there any benefit or detriment to combining my two TSP accounts? None of my military account has contributions from combat pay.
Q. Are there any disadvantages in moving my TSP balance to another financial institution besides paying higher management fees? I’m concerned that I won’t have access to my funds on an intermittent basis if left in the TSP.
Q. I have reached the age where I can withdrawal my TSP without penalty, but must pay federal tax on it. Do I have to pay federal taxes if I gift it to my 18 year old son or would he pay the taxes on it?
Q. I work with the U.S. Postal Service. I will reach full retirement age at 62 when I have 25 years. Would I be eligible to withdraw money at age 59 ½ from my TSP without a federal tax penalty? I understand the normal taxes would be due according to my tax bracket.