Browsing: TSP withdrawal

Q. I have the opportunity for a one-time lump-sum payment from the Thrift Savings Plan. I have not started taking an annuity from TSP. I am wondering what are the benefits or hazards of taking a one-time lump-sum withdrawal vs. starting taking an annuity? Taxes are great for one-time lump-sum withdrawal, but would it be as painful as just starting my annuity? When is it a good time to take a one-time lump-sum withdrawal? I am thinking of a one-time withdrawal and not starting my annuity until next year.

Q. I have a current loan that I am paying on in my TSP account. I am counting the days until I am 59 1/2 so I can make a withdrawal. Am I allowed only one lump sum withdrawal or, if I take a withdrawal while I am working, can I take another withdrawal when I retire in 4+ years? Is there a cap on the amount I can withdraw in my lump sum amount? Can I withdraw when I have a current loan with the intent of paying off the loan?

Q. I am planning to separate from the U.S. Postal Service and would prefer a full withdrawal of my TSP balance. I have an outstanding loan that I cannot pay off and would prefer to just pay the taxes and any penalty. Do I have to wait the full 90 days for this loan to go into default, or can I request that an immediate taxable distribution be declared and have the loan closed? When the loan is closed, do I need to pay the taxes/penalties then or would I just declare them when I file my taxes at year…

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