Q. I am three years away from retiring (active-duty military officer) and have some credit card debt I would like to pay off before leaving active duty. I am not eligible for a TSP hardship withdrawal because of my income. What would happen if I take out a TSP loan and intentionally not pay it back? I understand I would be responsible for it becoming a taxable distribution and a 10 percent early withdrawal fee, but would there be any other negative effects against me or my credit? Would it even be ethical?
Browsing: TSP withdrawal
Q. What happens if the down payment made is less than the amount of a TSP residential loan? Would the borrower have to claim the difference as a withdrawal and pay the penalty and claim as income? A. I don’t believe that there is a requirement to commit the entire loan to the down payment, but you should consult your tax preparer to be sure.
Q. At age 57, can I pull all my TSP out and roll it over into a primary house without paying tax? A. No.
Q. I know partial withdrawals are limited to one in retirement under TSP. Does this apply to rollovers as well? I want to top off my marginal federal tax bracket each year until I hit 70-½ by doing a TSP rollover of a varying amount to my existing external Roth account. If I have to use the monthly payment option to do it, it’s just too much trouble. A. Only one lump-sum TSP withdrawal or rollover is allowed per lifetime.
Q. I plan on retiring with 31 years of service at age 57. I have both the Regular TSP and the Roth TSP. I plan to withdraw my Thrift Savings Plan in a single payment. Can I transfer 100 percent of the Regular TSP to a Traditional IRA, but take the Roth TSP funds as a direct withdrawal without penalty? A. I believe so, as long as you have held the Roth account for at least five years. You should consult a tax adviser for specific advice before you proceed.
Q. I retired seven years ago from the military and contributed to a TSP account up to my retirement. I am currently 52 years old and would like to know if I can withdraw money out of my TSP account to pay for one of my children’s college loans without a penalty?
Q. I will be retiring Dec 2014 and want to withdraw my entire TSP monies. What is the federal withholding in percentage that will be taxed? And do they take it off the top of your balance or will it happen at income tax time?
Q. Is there a penalty for taking a lump sum TSP balance out at retirement for FERS employee to purchase a home? I may retire at age 56 or 57 with 30 years of federal service. If I decide to take my lump sum at retirement, will I be penalized? How much would come out if the amount is $170,000 right now?
Q. Hello, I’m a CSRS Special Agent that is planning to retire on Jan. 2, 2015. I also have been contributing to the Thrift Savings Plan. During a retirement seminar we were told that as law enforcement officers, we are allowed a one-time-only withdrawal from our 401(k), as long as we are 50 and older. We were also told that we are subject to income tax; however, we are exempt from the 10 percent early withdrawal penalty. Is this correct? Please advise.
Q. I plan on using a partial withdrawal to pay off my mortgage so I will retire mortgage free. I plan on transferring the money to the bank that I will be paying the mortgage off. Will I have to pay the IRS money later since I am not rolling this money to a traditional Roth IRA? What form should I use to transfer the money to the bank? I have a checking account there. I had thought since this is my money that it would not be hard, but I am getting confused. I am 62 years old and have…