Browsing: Disability

Partial TSP withdrawal

0

Q. I am 60 and had to retire early due to disability. I am receiving Social Security disability and a small annuity. Can I take a small amount — say, $10,000 — from my account but then start monthly draws when/if it becomes necessary? Should I leave all of my money in this account or do a rollover into a regular or Roth IRA? A. Yes, as long as you have not previously used your single partial withdrawal. I think you should retain your Thrift Savings Plan account for as long as possible.

Starting TSP withdrawals now vs. at 70 1/2

0

Q. I retired under FERS two years ago, and I haven’t needed to touch my Thrift Savings Plan account so far. I am receiving Office of Personnel Management, Social Security and military retirements. I am 68½ years old. I just received a 100 percent Veterans Affairs Department disability award, which will change my taxable military retirement to a nontaxable VA retirement. I don’t think this will have any effect on my long-term life expectancy. I have determined that I do not want to elect an annuity on withdrawing from my TSP. I am considering immediately starting a monthly TSP withdrawal…

Drawing TSP annuity before 59 1/2 without penalty

0

Q. I remember reading an article on ways to retire at eligibility of 56 years old and being able to draw my tsp before age 59½ without a penalty. Is there a way to do this? There is no disability involved in my retirement. A. Yes. If you retire from federal employment at age 56, you will be exempt from the early withdrawal penalty.

TSP loan

0

Q. I have not worked since fall 2011. I’m on leave without pay with the Postal Service. Currently on disability retirement approved by Social Security and the Postal Service. The Office of Personnel Management has until November to finalize the disability retirement. On Sept. 23, I default on my Thrift Savings Plan personal loan ($5,300). I am entitled to agency retirement pay of $1,645 per month but cannot be paid until OPM acts. Social Security is roughly ¼ pay, and I cannot realistically pay the catch-up amount and the two monthly loan payments for at least two months. At that…

Social Security reduction

2

Q. My husband was forced to retire early when the Army depot closed here in Sacramento, Calif. Several years later, he was forced to stop working due to a stroke and applied for Social Security disability. He was told that his Social Security allotment was greatly reduced because of his Thrift Savings Plan retirement account. He never thought this was fair because he has worked and paid Social Security all his life, but instead of receiving about $1,500 a month on Social Security, he receives a reduced $450. By comparison, I retired on a state pension and am fully qualified…

Disability and tax deduction from TSP funds

0

Q. I recently retired from the federal government due to becoming permanently disabled at age 61. I received my disability approval from the Social Security Administration. I withdrew a portion of Thrift Savings Plan funds to cover expenses as a result of not being able to work. Why was 20 percent tax deducted from the distribution of funds at age 61 and with the legal purpose of being disabled? A. Because that is the default federal income tax withholding rate for the distribution. The money has been applied toward your tax liability for the year.

Penalty on TSP withdrawal?

0

Q. My age is 52. I worked 22 years in the Postal Service. I have a Thrift Savings Plan account and am now retired due to a disability. If I make a full withdrawal, will I be penalized? A. Yes, unless you qualify for one of the exceptions listed on Page 7 of the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf.

Disability retirement

1

Q. I am being considered for disability retirement in the coming months. My application is pending consideration from the Office of Personnel Management. I am a GS-14 FERS employee, 54 years old, with about 32 years of service. I have approximately $250,000 in the Thrift Savings Plan, and my allocations are as follows: 15 percent C, 15 percent S and 70 percent I. I realize that is somewhat aggressive, but it has been like that for about seven years or so, and I have been hopeful of the international home run. Regrettably, this hasn’t necessarily come to fruition. I will…

Workers' comp and TSP withdrawal

0

Q. I am below the age for Thrift Savings Plan withdrawal without penalty (soon to be 50), but it looks like I will be out on workers’ compensation under permanent disability shortly. Due to the impact on my income and an ongoing issue, I need to make a withdrawal or close my TSP to continue meeting my obligations. I have thoroughly researched the issue of using a TSP but have little choice. A loan is not an option (I’m paying one off and, if I’m on disability, I can’t take one out). And I’ve looked into other avenues, to include…

Exemption from TSP early withdrawal penalty

0

Q. I am working, waiting for approval of disability retirement under FERS. Will I be penalized 20 percent if I withdraw my Thrift Savings Plan in lump sum when I am approved for disability? I was diagnosed with Stage II multiple myeloma in May. A. The exemption from the early withdrawal penalty to which you are referring is for a distribution taken as a result of a total and permanent disability. The TSP cannot certify that you qualify for this exemption and it is up you, or your tax preparer, to demonstrate that you meet this exemption.

1 2