Q: I am retired from the U.S. Postal Service and I am receiving full withdrawal monthly payments from my Thrift Savings Plan account. Is there or will there ever be a chance to change that decision and purchase an annuity through MetLife A: Yes. You may use form TSP 70 to complete a full, final withdrawal and direct the proceeds into a MetLife annuity.
Browsing: TSP withdrawal
Q: I will retire Dec. 31 and would like to begin monthly payments from my TSP account in January. I have read that you have to have your withdrawal form completed and sent by Dec. 14 to take effect in January, but I cannot determine which form to fill out to start monthly payments: TSP- 70 to be completed for full or partial payments or TSP-73 to be completed to make a change to your monthly TSP payments. A: Use form TSP-70 to start monthly distributions.
Q: My wife wants to withdraw money from her TSP to pay off financial obligations. How much can we expect to pay in taxes if she withdraws $65,000? A: Her withdrawal may be subject to withholding. You can review the information in the document at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf. How much you wind up owing in tax will depend upon the specifics of your tax return for the year of the withdrawal.
Q: I realize that you can leave your funds in the Thrift Savings Plan until age 70 1/2. But can you continue to contribute to the plan in retirement? If so, how? Can you have a certain amount taken out of your retirement check? If not, what is the advantage of keeping the money in the plan? Wouldn’t it be better to take it out when you retire, reinvest it and continue to contribute to the new fund until you need the money? A: You can’t continue to contribute to the TSP after you separate from service. You can transfer…
Q. I am 49 and a postal employee under FERS with 24 1/2 years of service. My job has been abolished and the whole RIF process ends on Sept. 9 of this year. I turn 50 before that date so I could possibly qualify for a Discontinued Service retirement or involuntary separation. If I retire under those circumstances, is there a TSP early withdrawal penalty incurred under an involuntary retirement? Would I be eligible for the Social Security supplement as well? A. You would only be eligible for the special retirement supplement when you reach your minimum retirement age, which…
Q. I was wrongfully terminated from federal service in 2010. The case was settled out of court, after seven months. During that time I was no longer in Civil Service and could not legally contribute to my TSP and, seeing I had no income, I removed my TSP so that I could continue to pay bills and maintain my mortgage. I was 50 years old at the item of the wrongful termination, I have paid the required taxes, but now I am subject to the penalty due to no fault of my own. As part of the agreement with the…
Q. I am a 48 year old male. I am a letter carrier for USPS. Due to unfortunate circumstances, I will be applying for Social Security disability and disability retirement from USPS. Here’s the thing. I have had two previous surgeries on my spine, both covered by worker’s compensation. Right now I am using all my sick leave until worker’s compensation receives all of the information it needs. Is there a separate retirement through OWCP or do I need to file for disability through the Post Office. I am thinking of separating from the Postal Service because of my financial…
Q. Thank you very much for allowing us the opportunity to “ask the experts” through your forum. It can be difficult to get a correct answer at times from the Web. I am an air traffic controller with 30 years government service, and am eligible to retire now at 50 years of age. I currently have a TSP loan with a $2,900 balance outstanding. If I retired now, would I be able to withdraw my TSP account as a lump-sum payment with this outstanding loan balance? Or would I first be required to pay off the $2,900 loan before TSP would…
Q. If I retire at 59, leave my money in TSP and immediately start taking monthly payments, can I leave my money there past 70 ½ and continue drawing monthly payments? Someone told me at 70 ½ I have to take it all out, but that’s not the way I understand it. A. You were misinformed. You may leave your money in the TSP for life, as long as you take the Required Minimum Distribution each year after reaching age 70 1/2.
Q. Age: 56 (will be 57 in July 2011) Service comp date: May 1983 Hired: July 1984 Retirement: FERS from the start Break in service: May 2007-February 2009 (about 22 months) Military: USMC 1975-1978 (“bought” the time) VER Authority: Application deadline and irrevocability date 4/25/2011 Effective date 5/31/2011 RIF Effective Date: Sept 9, 2011 Questions ========= If I lost my job on Sept. 9 (with 28 years and about four months service) and took a discontinued service retirement, would I be eligible for: a) Annuity supplement (Social Security offset) b) No “+ 10” reduction of my FERS annuity c) TSP…