Q. I will be starting monthly payments from my Thrift Savings Plan account. I’m confused as to this making your payments last for 10 years. Is this really putting me into a better tax situation? You must pay on your taxes at the end of the year. I spoke to someone at TSP, and she was explaining that it is to my benefit. If your payments last 10 years or longer, they only tax you as though you’re married with three dependents. If it’s not lasting for 10 years, they take out 20 percent every month. Isn’t this a wash…
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Q: I’m planning to retire this calendar year and want to leave my Thrift Savings Plan as is. Will I be able to take TSP distributions at will, or am I only allowed to take a one-time distribution (roll-over)? A: You’re only allowed to take a partial distribution one time. You may also elect a full distribution in the form of adjustable monthly payments and a final single payment, however. — Mike Miles