Q. Can I continue to make biweekly contributions to my Thrift Savings Plan account if I make a partial withdrawal from my account? I am 60 years old. Also, can I withdraw these funds at any time or at a certain time of year? A. Yes, and you may request your age-based in-service withdrawal at any time.
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Q. I am separated from federal service, and I want to roll my Thrift Savings Plan funds over into two or three separate IRAs at one or more brokerage houses. Am I allowed to make two or three partial withdrawals and roll each portion into separate IRAs? Are there time restrictions such as only being permitted to make one such transfer in a 12-month period? A. You are not allowed to take multiple partial withdrawals from your TSP account. You may roll the money over to an IRA and then roll over partial withdrawals from there to additional IRA accounts.
Q: If you chose the monthly payments option on withdrawing your TSP, can you also take a one-time lump-sum payment? A: Once you’ve initiated monthly payments, which are considered a form of full withdrawal, you can’t take a partial withdrawal.
Q: I retired Nov. 30 from the Foreign Service at age 60 and have a substantial sum in my Thrift Savings Plan. I would like to make a partial withdrawal in the near future to give me cash to renovate my house. In the future, when I decide to make a complete withdrawal, it looks like I could do a combination of a second lump-sum payout and a series of monthly payments. Am I reading the rules wrong? Can I indeed make this second lump-sum withdrawal? A: Not unless the lump-sum withdrawal is the terminal withdrawal at the end of…
Q: I have recently left federal service on a deferred retirement. I have about 27 years of service and am 50 years old (49 when I left service). If I withdrawal part of my Thrift Savings Plan account, is there a penalty, or do I simply have to pay income tax on the withdrawn amount? I have some very unexpected bills with the death of my son and do not want to pay monthly payments for a loan. I plan to withdraw about $50,000. A: It sounds like you’ll be subject to the penalty unless you can meet one of…
Q: I will be retiring, hopefully, at age 56. I have been investing in the Thrift Savings Plan since 1987, contributing the maximum amount allowed (15 percent). At age 56, can I set up an annuity with TSP requesting a small amount each month and still receive interest on the amount left in my account? A: Yes, as long as you haven’t already taken a partial withdrawal. Use a partial withdrawal to purchase the annuity and leave the rest in your account until you need it.