Q. I am a 55-year-old postal worker of 27 years who has a work-related medical problem. Last year, I was let go on “no work available status” and have been on workers’ compensation since. I have applied for postal disability and am waiting to see what happens with that. So far, I’ve received no letter of separation nor postal job offer. Will I be able to access my Thrift Savings Plan without penalty if I become separated from the Postal Service and am granted disability retirement? A. The answer depends upon your specific circumstances. If you separate from service during the…
Browsing: SEPP
Q: Once the Roth option becomes available through the Thrift Savings Plan (supposedly the first pay period in 2012), is there any IRS preclusion to making substantially equal periodic payment (SEPP) distributions in 10 years or less from our current TSP into our upcoming Roth TSPs? SEPP distributions in 10 years or less are currently permitted in regular Roth IRA’s and regular Roth 401K’s; I see no reason the IRS regulations would prohibit similar SEPP distributions in TSP, would love to be able to do so, and would like to be able to plan accordingly. A: I’m not sure I…
Q. I plan to retire at the age of 53 with 22 years under law enforcement with the Bureau of Prisons. Can I have my 72T Substantially Equal Periodic Payments come from TSP or do I have to transfer to a financial planning firm such as Edward Jones? A. The payments can come from your TSP, but will have to be set up as monthly payments.
Q: If I retire from the Postal Service this next year, can I draw monthly payments from my TSP account before I am 59 1/2 without penalty? A: Yes, if you: 1. Retired during or after the year in which you reached age 55; or 2. Take them as series of Substantially Equal Periodic Payments under IRS rules; or 3. Meet one of the other exceptions to the penalty outlined in the notice you’ll find at www.tsp.gov/forms/octax92-32.pdf — Mike Miles