Q. I am a U.S. Postal Service marketing employee under FERS. I plan to retire in 2021 at the age of 56 with 36 years of USPS employment. Will I be able to access my TSP account without penalty prior to age 59 ½?
Browsing: TSP withdrawal
Q. I have reached the age where I can withdrawal my TSP without penalty, but must pay federal tax on it. Do I have to pay federal taxes if I gift it to my 18 year old son or would he pay the taxes on it?
Q. I noted in your most recent answer that “Under the current rules, your withdrawals will come, proportionately, from both the Traditional and Roth accounts.”. That would seem to argue in favor of rolling over any Roth TSP to a Roth outside of TSP, both to reduce the amount of the TSP RMD and not having to withdraw anything from the Roth.
Q. I retired from the Federal Bureau of Prisons on November 28,2014. I withdrew a part of my TSP receiving it on February 17, 2015. When I received my 1099 it identified my distribution code as 1 -early premature distribution. Why is it not code 2-early distribution exception applies, since I am federal law enforcement?
Q. I am 70 ½ years old. I have $200,000 in my TSP. What is the best course of action for me, since I do not need any of the money? Can you please provide some advice for minimizing the tax?
Q. I work with the U.S. Postal Service. I will reach full retirement age at 62 when I have 25 years. Would I be eligible to withdraw money at age 59 ½ from my TSP without a federal tax penalty? I understand the normal taxes would be due according to my tax bracket.
Q. I have 27 years as a federal law enforcement officer under my belt and four before I am mandatory. If I retired on disability, would it affect my 401k and health insurance? I had a kidney transplant in 2011 and open heart surgery for aortic sleeve and valve replacement. I need my current health insurance just to help me with medication costs. Could I access my 401k while waiting to be approved? How long does one receive disability retirement assistance?
Q. We are approaching the age to take required minimum distributions from our TSP accounts as well as three IRAs. The IRS allows one to take the entire calculated RMD from a single IRA (rather than each account) to satisfy the RMD. Can the TSP’s mandatory RMD be declined if one is taking the total calculated RMD from an IRA outside of TSP? If not, it might make sense to roll over our TSP accounts to IRAs to be able to use the combined withdrawal rule.
Q. I was terminated from my position with the Federal Bureau of Prisons (I later got my job back through arbitration), and I’ve withdrawn money from my TSP. I was forced to pay a 20 percent penalty and another 10 percent on top of that. I was told I may be able to get back the 20 percent because it was from a termination. Is this true? If so, how do I accomplish this?
Q. Would it be wise to take an age-based withdrawal from TSP to pay off/down credit card debt before retirement?