Q. I will retire under the law enforcement FERS category at 52 with a $400,000-plus balance. Can I take out a $100,000 lump sum at retirement without a penalty and then roll over the rest into a personal IRA?
Browsing: TSP withdrawal
Q. I turned 59 1/2 last November and noticed the 10 percent penalty is still being taken from my monthly TSP payment. Is this correct?
Q. My brother works for the U.S. Postal Service. He requested and received a distribution of $30,000 from his TSP account in 2014, before he turned 59 1/2. Accordingly, he will be taxed for IRS purposes and get hit with the 10 percent early withdrawal penalty. That I know. He lives in New Jersey where TSP contributions are not excluded for N.J. state income tax purposes. The question is as follows: Is the $30,000 distribution from his TSP taxable in full for NJ state income tax purposes? If so, seems like double taxation.
Q. I am retired LEO, age 57, and I made a partial withdrawal of my TSP for a rollover to an IRA. Will I be able to use the remaining amount for a down payment for a home and close the account? If the withdrawal is not possible, would you provide guidance to obtain funds from the TSP for a down payment?
Q. You have answered a question of mine previously that when I reach MRA (age 56) with 36 years of service I will be able to withdraw TSP without an early withdrawal penalty. That’s fine, but I read a post about an individual who was under the firefighter/ law enforcement retirement criteria and would be subject to early withdrawal penalties up until age 59 ½. I’m a little confused; if I have met MRA but am under 59 ½ how do I not get a penalty and they do, when they have met the criteria for FF/LEO/ATC retirement?
Q. In the context of a 72(t) withdrawal does “annually” refer to a 12-month period or the calendar year? I took my first distribution in a lump sum in July. Can I take the annual amount in 2015 on a monthly basis starting in January or do I have to wait until July and again take a lump sum? My calculation was done using the “fixed amortization method.”
Q. I am considering leaving my federal job but still owe approximately $10,000 back on my TSP loan. How can I figure out if it’s more beneficial to just have the balance count as taxable income vs. taking a bank loan to pay it back? A. There is no way to know, in advance, which will work out better in the end. You might want to have your tax preparer run pro-forma calculations to see what the impact will be on your tax returns, and make the decision based on that information.
Q. I am still in government service but did need to take a lump-sum withdrawal of my TSP funds at 59-1/2 years old. My plan is to continue to work and to pay into my TSP account. What will my withdrawal options be when I retire at the planned age of 68?
Q. I am 68 years old and retired under Civil Service. Will I be penalized 20 percent if I withdraw my TSP funds in a single payment? Will the federal government withhold federal taxes on the funds before any penalties?
Q. I understand that you have up to 90 days to repay your outstanding loan after retirement. Is there an option for the outstanding balance to be paid with funds in the TSP account prior to the 90 days? A. No.