Q. We are planning to buy a home and will use a Veterans Administration loan. We will pay all the closing costs and plan to use a TSP residential loan for those costs. We have to show the money in our bank account as we move forward with our loan proceedings. We are not sure of the exact amount that will be needed at closing, so could possibly end up with more than what is required. Can we use any excess? How do we report what is used for the purpose of closing and fees and possible down payment? If…
Browsing: TSP withdrawal
Q. Say I take a TSP partial lump sum and then monthly installments at retirement. In a few years, I need large sums, but understand I can’t take another lump sum. Is there a limit on the amount of monthly payments I can choose? Can I ask, for example, for $50,000 per month until the account is exhausted or I change back to a lower amount?
Q. In trying to maximize my withdrawal options with the TSP, I’m leaving all my money in until age 70-1/2. After I make mandatory withdrawals which TSP will calculate, can I still use the one-time withdrawal option if an emergency arises? A. No.
Q. If I retire at 57 with 33 years will I have to pay a 10-percent early withdrawal penalty from my TSP? A. No.
Q. I will retire under the law enforcement FERS category. Because I am retiring at 50, I plan to take the life expectancy payments. If I want to take a partial withdrawal of $50,000 in a few years for my son’s college education, can I do this?
Q. Can you draw a retirement benefit after you have withdrawn your funds from your TSP account? A. Yes.
Q. Say I have $100,000 in my TSP account when I retire. I decide to choose monthly payments for the entire $100,000 at a monthly rate of $500 a month. Does the $99,500 that is left in the TSP after the first month’s payment continue to earn interest, or is that $100,000 value locked into “stone” and I will never earn another nickel on the money that is sitting there (i.e., after 200 monthly payments my TSP funds will be gone). I understand that once a year I can adjust the monthly payment amount. Assuming that I still do earn…
Q. Is FICA withheld from TSP monthly payments? A. No.
Q. When I retire from civil service and start drawing from my TSP account, will the monthly amount be divided between my contributions and the federal government’s contribution, or will it be my portion until it is exhausted then start coming from the federal government? A. It will be divided.
Q. I am working for the Veterans Administration and I have a TSP account. When I retire, do I have to roll over to IRA to withdraw money or withdraw from TSP? A. You do not have to roll over your TSP account to an IRA, and may (and should) maintain and manage it for as long as you live.