Q. I would like to know if there are any options to remove any portion of Thrift Savings Plan balance (e.g., my own contributions), prior to separation, retirement or a disability. I do not want to leave government service, nor am I eligible to retire. But I would like to control my own investment choices and am willing to consider paying an early penalty and taxes to withdraw the funds. A. If you are at least age 59½, you may take one age-based, in-service withdrawal. If not, you may not withdraw or roll over your TSP assets unless you can prove…

Q. I am going to retire under the Civil Service Retirement System. I will be 58 when I retire. Will I be able to withdraw my Thrift Savings Plan upon retirement without any penalty? I will be 59 one month after I retire. A. Yes.

Q. If I have more than 240 hours of annual leave when I retire, will I be allowed to cash that amount in also, or will I have to take the leave before retirement? If I retire at the end of a calendar year, will I be able to cash in my annual so that it is taxed the following calendar year?  Does this also apply to TSP? A. You may delay your TSP withdrawals for as long as you like, subject to the Required Minimum Distribution rules that apply beginning at age 70½.

Q. I have two questions on the Thrift Savings Plan MetLife annuity. On page 11, paragraph 1, under the heading, “How Your Annuity is Taxed,” in the TSP pamphlet, “Withdrawing your TSP Account After Leaving Federal Service” (June 2007), reads: “… your TSP annuity payments will be taxed as ordinary income in the years when you receive them.  However, these annuity payments are not subject to the IRS early withdrawal penalty, even if you are under age 55 when they begin.” As both my wife and I are under 55 and are considering an early out/buyout that has just been…

Q. I am a Federal Employees Retirement System employee, and I am confused regarding which of my three retirement components are subject to federal and state taxes. Basic annuity? Thrift Savings Plan annuity? Social Security supplement? A. Distributions from your TSP account are considered taxable income.

Q. I plan to retire at my minimum retirement age of 56 with 31 years of service. I plan to get my Federal Employees Retirement System pension, as well as my Thrift Savings Plan annuity immediately. I know my FERS annuity is not subject to the minimum earnings test. Is my TSP annuity subject to that? Is the TSP annuity considered income? A. Annuity income from your TSP account is not considered earned income.

Q: I have about $82,000 in my Thrift Savings Plan, from $89,000 two weeks ago, with 80 percent going into the L2020 Fund and 20 percent into the G Fund. Should I transfer all of my fund to the G Fund, or is it kind of late now because of money having gone down since last week. Can you give me any suggestions on what I should do? A: Sounds like you’re in over your head, like most investors. We don’t give specific investment advice through this forum. That would be irresponsible. In general, if you don’t know what else…

Q. I am retiring by the end of this year at the age of 56.  I read in the Thrift Savings Plan where you can take a one-time withdrawal payment. Do you have to pay a penalty? Do you have to take it at the end of the year? For example, if I retire in December 2011, will I have to wait until December 2012 to take the one-time withdrawal? Can I take a withdrawal as early January or February 2012? A. Once you’ve retired, the partial withdrawal is available immediately.

Q. I was under the impression that I could make monthly withdrawals from the Thrift Savings Plan and change that amount every year. When I try to calculate how long my chosen amount will last, I get a message saying the amount I have chosen is less than the interest I will accrue. Why is this? Am I forced to choose an amount that is greater than what I want? A. The calculator won’t work unless the amount of your withdrawals exceeds the amount of interest that will accrue each month based on the interest assumption you entered. This is…

Q. I am under Civil Service Retirement System Offset. When I took the break in service, I withdrew my CSRS funds (about $50,000; probably $60,000 or more by now). That was in 1998, so I will have to redeposit if I want it to count toward my retirement. I will be 58 next month and am considering retiring in 2013. I have been putting $600 in my Thrift Savings Plan account every payday. I can withdraw money at 59½ and not pay penalties, but it seems like I will be double-taxed. When I withdraw the money from my TSP to pay…

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