Q. I am retiring from federal service (MRA+10). I have an estimated TSP balance of $200,000. I’d like to take monthly payments to draw down to a $50,000 balance and leave it in TSP and then draw Social Security. Does TSP allow a member to draw down via monthly payments and then freeze the account? Or once you start monthly payments do you have to continue until account is zero?
Browsing: TSP withdrawal
Q. I have read in recent months that the Thrift Board is considering allowing greater flexibility in the withdrawal options from the TSP. I wish to stay with the TSP throughout my retirement if I can manage my funds through a 3-bucket approach. As it stands, monies withdrawn come out via a pro-rata method from each type of fund invested in. For example, if I desire to only withdraw from my G Fund balance and not my C,S, and I balances to allow for more growth as in the event of a down market year, I can’t do that as the rules currently…
Q. I have finally reached my decision to leave government service and want to check on one last item. Since I am 56 I want to confirm that I will not be impacted by the 10 percent penalty on TSP withdrawals if I don’t take an annuity and set up a routine monthly withdrawal to cover me until I am 62 and eligible for my FERS annuity.
Q. I have been out of the service now for over two years and have about $25,000 in my TSP account. I am in the process of buying a house and was considering closing my account to help with the cost. What would the penalties be for California, and would this be a terrible financial decision?
Q. Last year I moved the majority of my money out of TSP, and I’ve made over 20 percent since last May. I’m thinking of retiring at the end of the year and realize that because of North Carolina’s waiver of its state taxes on TSP accounts, I’m destined to return to TSP. Do you know what latest date is that I can transfer my money back into the TSP?
Q. I will take early retirement at the age of 56 with 16 years in service. Can I take lump sum withdrawal from my TSP account, or do I have to wait until I reach 59 1/2?
Q. I am looking at retiring next year, during the year that I turn 55. I qualify under the law enforcement officer firefighter provision. I would like to make a 100 percent withdrawal from my TSP. I am aware that this would put me in the 33 percent tax bracket, but would I be subject to the 10 percent tax penalty for early withdrawal?
Q. When a TSP holder dies, does the balance of the TSP account transfer to the next of kin? For example, if I had $500,000 when I died and was receiving monthly payments in retirement, would the remainder of unpaid money in the account go to my widow (or children)?
Q. I will be 56 when I retire with 37 years [of service]. Will I be penalized if I start taking my TSP at 56 or do I need to wait to 59 1/2 to avoid the penalty?
Q. I am 58 years old (I’ll be 59 in October 2015) and my separation date was on May 30, 2015, I have two outstanding loans of $16,459.50 for residential purposes and $24,783.93 for general purposes and a Financial Hardship In-Service Withdrawal for $24,000.00 with TSP. I asked for separation because after February 10, 2015 I was in Leave Without Pay (LWOP) due to disability, and eventually in March 2015 I was approved for Social Security Disability, which will not start to pay until September 2015. I have a TSP account balance of $44,107.60 which I am planning to do a…