Q. I’m a CSRS retiree, age 66, and I want to withdraw a portion of my TSP savings to pay off a mortgage. Can I do this? If so, what are the tax implications or any future limitations that I may not be aware of?
Browsing: TSP withdrawal
Q. I will not be retiring until somewhere between December 2018 and December 2019, but am thinking ahead and trying to plan how one should withdraw money from TSP in retirement if you want to use the monthly payment option. Can you specify that the monthly payment all comes from one particular fund? Does it make sense to put how much you expect to withdraw in a particular year in the L income fund and draw only from that fund and then adjust what you have in that fund annually? I would like to protect myself from market volatility but…
Q. I am a 54-year-old FERS employee and have 27 years of federal service. I have a TSP account and would like to start a Roth TSP this year. I will probably work until I am 62 years old. At age 60, when my girls start college, can I take a withdraw from my Roth TSP to pay for their college without penalty?
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 am a veteran and a federal employee at a VA Hospital. I am under FERS. I just turned 56 on July 30, 2016, and I have a total of 27 years-plus of federal service. Last August I filed my disability retirement because of my disabilities, and the papers are still being processed. Hopefully they will finalize it by next month or this month. If I withdraw all my TSP (lump sum), will there be a penalty?
Q. I have been considering moving TSP money into the G Fund to have it exempt from New Jersey state income tax. My search for an answer leaves me with confusing information regarding exemption from state tax which talks about “direct” obligations and qualified mutual funds which invest in federal obligations and bonds. To summarize: Since savings bonds, etc. are exempt from state tax, and the G Fund is made up entirely of federal obligations, couldn’t that fund be exempt?
Q. I’m retired, and for 2017, I increased the amount I’m taking out in monthly TSP withdrawals. I received a letter today from TSP acknowledging my payment had increased, the correct amount and the number of months these payments are expected to last. The letter went on to say if my payments are expected to last less than 120 months, they’re considered eligible rollover distributions, not periodic payment for tax purposes. I really don’t know what this means, but somehow I suspect it means I’ll pay more in taxes. Can you shed light on this?
Q. I am retiring in 15 months with 34 years of service at age 56. I am downsizing my house for a lower house note. I have enough in my TSP to purchase a home. Is this a good idea? The note on the house would be equal to what I would receive from my TSP. I will still have my FERS supplement and my FERS.