Q. I am planning to retire in Jan 31, 2020. At that time I will be 56 years old with 33 years of service. I am planning to take a lump-sum payment and monthly withdrawals from my TSP account. Will I be penalized for withdrawing my TSP? If so, how much? How much tax do I have to pay? How long do I have to wait to receive a lump-sum payment from the TSP?
Q. I’m a Department of Homeland Security FERS employee (age 45, 25 years of service) under special category (law enforcement) for early retirement. I would love to retire this year, but do not want to get locked in until 59 ½ if I choose to withdraw TSP funds under 72(t). Is there another way for me to withdraw from my TSP without incurring a penalty? My suspicion is that I will have to wait another four years until I’m 50 with 30 years of service.
Q. I am a member of FERS, and I am trying to gain a better understanding of my options for avoiding the 10 percent IRS penalty for early withdrawal. I am wondering what the impact would be if I resign from the federal workforce in my 40s to take a job in the private sector for a period of time (say until I am 55). Upon retirement from my private-sector job, assuming that I am able-bodied with no medical issues or high medical bills, is there any way that I can begin taking monthly payments from my TSP funds without…
Q. Hello, I will be 58 years old on November 9, 2018, and am a recent FBI retiree as of December 2017. I retired after 30 years and 4 months of FBI service. Briefly, I was told by our FBI TSP office recently that a new TSP withdrawal rule is now in effect. If any federal government employee retired after age 55 (I retired at age 57), they can now begin withdrawals from their TSP accounts without worrying about next year’s 10 percent IRS tax penalty. I need final verification regarding this matter. Thanks.
Q. I work for the Federal Bureau of Prisons and will be eligible to retire at 48 years old, with 25 years in federal law enforcement. I am familiar with the IRS additional 10 percent tax penalty for early withdrawals and some of the exceptions. I was curious to know if you could elaborate on the options that could possibly pertain to my situation?
Q. I am a federal law enforcement officer with 25 years of service and I am 51 years young. Can you advise what are my current options and my future options (2017 TSP Modernization Act) to take withdrawals from my TSP account without penalty?
Q. I am a FERS employee with 33 years of service and will be eligible to retire at the end of the year when I turn 56. Upon retirement, I would like to keep my 401(k) money in my TSP account, but would like to take out approximately 4 percent per year in monthly payments. Would this be subject to the 10 percent IRS penalty for withdrawals before age 59 1/2?
Q. I plan to retire in September 2018 at the age of 58. Does it make sense to withdraw the max amount from TSP annually and remain in the 12 percent tax bracket or just take the minimum I need and pay more on taxes when I turn 70 and start drawing Social Security and required minimum distribution? If I choose option 1, I would probably invest the extra somewhere.