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…
Browsing: TSP withdrawal
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’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…
Q. Suppose I get an early-out opportunity this year at 52 or even retire at my minimum retirement age of 56 in 2020. Would I then get penalized if I were to start making withdrawals from my TSP before I reached the age of 59½? I have heard that age mentioned in relation to early TSP withdrawals before, but I am not sure how it factors in.
Q. I will be retiring at age 57. I will be taking monthly payments from TSP at that time. I understand after monthly payments are started, the only other option left is a full withdraw. If I take monthly payments until age 59½, can I then roll over the balance into an IRA? Flexibility in withdraw choices is my goal. Is rolling over into an IRA still considered a full withdraw, and is this possible?