Q. I plan to retire on December 31, 2018, with 33-plus years of service. I am 58 years old and will be eligible to receive the Social Security supplement until age 62. If I draw down a portion of my TSP upon my retirement as lump sum, will that be considered regular income for me for the year and will offset my supplement? Say I draw down $50,000 or more as a lump sum, will I lose my supplement for that year (2019)?
Browsing: TSP withdrawal
Q. I am planning to retire in Jan 31, 2020. At that time I will be 56 years old with 33 years of service. I am planning to take a lump-sum payment and monthly withdrawals from my TSP account. Will I be penalized for withdrawing my TSP? If so, how much? How much tax do I have to pay? How long do I have to wait to receive a lump-sum payment from the TSP?
Q. My husband has money in a retirement account that is not in the TSP. When we retire would we be able to just draw down his accounts and leave my TSP account alone? While his account is good, the TSP is, as you know, a great vehicle to save / invest money. His retirement accounts and mine our about the same: $450,000 in each. We are planning on retiring at 60 and delay collecting Social Security till 70 years of age. My husband is 58 and I am 57. While I know how to save, I’m not sure how…
Q. I’m a Department of Homeland Security FERS employee (age 45, 25 years of service) under special category (law enforcement) for early retirement. I would love to retire this year, but do not want to get locked in until 59 ½ if I choose to withdraw TSP funds under 72(t). Is there another way for me to withdraw from my TSP without incurring a penalty? My suspicion is that I will have to wait another four years until I’m 50 with 30 years of service.
Q. I am a member of FERS, and I am trying to gain a better understanding of my options for avoiding the 10 percent IRS penalty for early withdrawal. I am wondering what the impact would be if I resign from the federal workforce in my 40s to take a job in the private sector for a period of time (say until I am 55). Upon retirement from my private-sector job, assuming that I am able-bodied with no medical issues or high medical bills, is there any way that I can begin taking monthly payments from my TSP funds without…
Q. Hello, I will be 58 years old on November 9, 2018, and am a recent FBI retiree as of December 2017. I retired after 30 years and 4 months of FBI service. Briefly, I was told by our FBI TSP office recently that a new TSP withdrawal rule is now in effect. If any federal government employee retired after age 55 (I retired at age 57), they can now begin withdrawals from their TSP accounts without worrying about next year’s 10 percent IRS tax penalty. I need final verification regarding this matter. Thanks.
Q. I started working for the Federal Bureau of Prisons at 27 and I am contemplating retiring at 47. Can I retire at that age and still draw my pension and Thrift Savings Plan at 50?
Q. I noticed you always say employees should place their money in the L Fund that most closely corresponds to their life expectancy. However, on the TSP website shows you should invest in the L Fund that most closely corresponds to when you will withdraw the money. Can you elaborate on this issue?
Q. What is the difference between a Roth TSP and a Traditional TSP? I was listening to a person yesterday and she says to place your funds in a Roth TSP so you don’t suffer the penalty at withdrawal. The only problem, she says, is you have to leave them in the Roth TSP for five years. Please clarify.
Q. I am a federal employee (6+ years of service) making contributions into a TSP account. I plan on retiring from government service in December 2020. I also have funds in other IRAs. This year I turn 70 ½ years old. Can I still make contributions into my TSP account while I receive required minimum distribution money? Can I take in-service distribution not RMDs?