Q. I retired from the Federal Bureau of Prisons in June 2015 with 25 years and I was 49 years old. Will I get charged the 10-percent penalty, if I decide to take monthly payments?
Browsing: TSP withdrawal
A. I was looking for some information regarding VERA and what effects it will have on benefits including TSP. I heard that you cannot withdrawal from TSP until age 55 without penalty. I was also told when I called the TSP helpline that even with a VERA, if you leave before age 55, you cannot withdrawal from TSP until age 59½ to avoid penalty. Does anyone know if what I was told is correct? I find it hard to figure things out with the TSP publications available. And you never know if the person you spoke with really knows. Can you…
A. Is it possible for me to take withdrawals from my TSP after I’m 59½ years old and still make contributions to the TSP while remaining a government employee? If so, what possible issues may arise?
Q. When I retire, can I transfer a lump-sum potion of my TSP to an IRA and still receive monthly payments for the rest?
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 plan to retire at 51 years old. I am federal law enforcement and eligible to retire at age 50 (I have 22½ years as a law enforcement officer and 26 total years). I need to access my TSP immediately to pay emergency expenses. If I request a hardship withdrawal prior to my retirement date, will I be subject to the 10 percent early withdrawal penalty?
Q. I am currently 55 years old with 30 years as a special category employee (public safety officer). Can I take an age-based in-service withdrawal now from my TSP account?
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)?