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.
Browsing: early withdrawal penalty
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.
Q. I will be 61 when I plan to retire with 38 years in service under CSRS the entire time. I am not counting on the TSP as part of my retirement and plan to use the money for home repair, paying certain loans, etc. What penalty/tax percent will I incur? I was planning on retiring in December, but January might be better for taxes on less income received.
Q. I am eligible to retire under FERS in January 2016 — at age 56 with 36 years of continuous federal service — and begin drawing a pension. As such, I am able to withdraw from my TSP without incurring the early withdrawal penalty. I am also eligible for the Social Security supplement. If I retire from federal service, begin drawing my pension, and take a job with a private company or start my own business, I understand that I will lose the Social Security supplement if my gross income exceeds a certain threshold, but will I still be able to…
Q. I am retiring at age 50 as a federal law enforcement official at the end of the year. I would like to make penalty free withdrawals from my TSP starting next year. Can I make monthly withdrawals from my TSP account in the amount of my choosing without incurring the 10 percent early withdrawal penalty? I would not change the amount of the TSP monthly distributions until sometime after age 59. The TSP computed payments based on my life expectancy were too low of a figure.
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?
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?