Browsing: TSP withdrawal

Q. I’ve been reading that the TSP is terrific for accumulating funds for retirement, but not so good when it comes time for withdrawal options when the time comes to tap my account. Do you agree with this? And would I be better off rolling over a portion of my TSP into a private IRA-type account so that I can more easily manage my account and withdrawals, for example, where the monthly distributions come from (because of the TSP proportional distribution rule, for example)?

Q. My mom retired from government services on Nov. 1 because of dementia. She just had a birthday and is now 65. The government is giving her the run around, saying she can’t withdraw and if she goes into a hospital the money returns to the government. She is trying to get her money because she is progressing fast with this illness. Who can we call or hire to look into this?

Q. OPM approved my disability retirement case in 2015 (after 31 years of service with the federal government), and I “officially” retired on disability at age 54 of that year. I was denied Social Security disability benefits. I am now receiving the 40 percent disability retirement annuity and am having a difficult time making financial ends meet each month. Therefore, I am looking at the possibility of withdrawing fixed monthly payments from my TSP account to provide additional income until I turn 62, when my disability retirement annuity is converted to a regular retirement annuity. I currently have $323,000 in…

Q. I’m going to retire in six months, and I qualify for the special supplement. I understand that that supplement is subject to the Social Security earnings test but that my FERS retirement annuity is not counted toward that test. Is my thrift savings annuity and/or withdrawal subject to the Social Security earnings test? In other words, will my special supplement be lowered if my thrift savings annuity/payments go over the maximum allowed earned income (about $16,000)?

Q. I am retiring May 1. I want to pull some of my savings in TSP for a line of credit on my home to send my child through college (she graduates May 6) and to pay off the rest on my home so I will be secure as a single mom. I want to use the rest for an annuity. How much will taxes be for the withdrawal?

Correction: A previous version of this post misidentified the the tax-exemption characteristic of a Traditional IRA. This post has since been corrected to explain a Traditional IRA is not tax-exempt. Q. I’m retiring at 50 years of age after 22 years in federal law enforcement. I’m considering withdrawing all my TSP funds to a financial institution under a tax-exempt traditional IRA. I understand there’s no federal tax liability; however, I reside in the state of California. Is there a state tax liability for the withdrawal?

Q. I retired in December 2015, but have not taken any money from TSP. I will need to in the near future. I would like to take some monthly payments to begin with, but at this time I am unsure how many years I would continue this. Let’s say my TSP has $200,000, and I begin monthly payments of $1,000 (assuming I will use $100,000 for this). At a later date, I decide to roll the other $100,000 into an IRA. Can I at a later date withdraw or roll the remainder of the $100,000 I was using for monthly payments…

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