Q: Thank you for your previous answer regarding my TSP account and when I must start taking withdrawals. Is it possible to rollover my total TSP account to my IRA with my local credit union and start taking taxable withdrawal that way? Would the withdrawal of payments still be the same? A: After you retire, it is possible to rollover your TSP balance to an IRA, but this will not change your minimum distribution requirements. If you want the smallest distribution possible, you can leave your money in the TSP and request monthly distributions based on your life expectancy. If…
Browsing: TSP withdrawal
Q: I am a FERS employee with the United States Postal Service. When I retire will I be permitted to withdraw the funds in my annuity, my TSP, my accrued vacation and sick leave to be reinvested into private accounts so they can be inherited by our children upon the deaths of myself and my spouse rather than be sucked back into the government’s coffers? If so what forms would that require? A: You may withdraw your TSP account balance immediately after you retire, although the vested amount is yours to keep and not at risk of being “sucked” back…
Q: I am a CSRS employee and am going to retire in May 2012 from federal service/military service (Air National Guard) at age 55. When I retire, I want to withdraw all TSP contributions I made as a CSRS employee. I have 3 questions that I would like to get the answers to: Will I have to pay taxes on the amount (currently a little over $55,000)? Are there any penalties I will have to pay when I request a full withdrawal of these funds? What is the tax rate that I would be expected to pay if I have…
Q: I am a retired CSRS post office employee. I am 65 1/2 years old and have left my funds in TSP. How long before I have to start withdrawing the funds? I plan to rollover my deposit to my IRA with my postal credit union. A: You’ll have to start withdrawing funds by April 1 of the year following the year in which you reach age 70 1/2. You can’t rollover your Required Minimum Distribution (RMD) to an IRA, however, since that would defeat the purpose of the RMD, which is to collect taxes.
Q: I am 52 years old with 27 years with the Postal Service (FERS). How would it affect me if I accepted the Voluntary Early Retirement Authority (VERA)? Would I get the Social Security Supplement upon acceptance, and how would it affect my TSP, as I would need to start withdrawing it immediately upon accepting the VERA? A: Under this scenario, your TSP funds will be subject to the early withdrawal rules until you reach age 59 1/2. You could avoid the early withdrawal penalty, however, by initiating a series of Substantially Equal Periodic Payments (SEPP) under IRS code section…
Q: I owe back taxes to the IRS. Is there any way to transfer the money from my TSP balance back to the government? Most of the balance I have in my TSP account is the amount that was matching funds from the government. I just want to give it back to satisfy my tax debt and start all over again, and be square with the IRS. Can this be done? A: Not that I know of. You’ll have to either take a loan or a withdrawal and pay any taxes due before sending the money to the Treasury.
Q: I am a federal firefighter under CSRS Special Retirement due to retire in November of 2011 at age 50. At what age will I be able to collect on my TSP retirement? A: While you can access your TSP account any time after you retire, you’ll be subject to the early withdrawal penalty rules until you reach age 59 1/2, unless you qualify for one of the exceptions. See page 4 of the tax notice at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf for details.
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 plan on retiring in 2015 from the Postal Service at the age of 56, with 31 years of service. I am FERS and will have about $400,000 in my Thrift Savings Plan account. Would it be wise to withdraw this money at the time of retirement to pay off my mortgage, son’s school loans and all remaining bills? This way, I will have no expenses and could live strictly off my Postal Service retirement and the Social Security Supplement. If I understand it correctly, I wouldn’t be charge a penalty because I would reach my minimum retirement age…
Q: I will retire shortly from the U.S. Postal Service. My question is about withdrawing my money from my TSP account. My husband, who is already retired, and I went to see a financial adviser about retirement planning. I just turned 62 in December and my husband is 66. The financial adviser said we should take all my money out of my TSP account and hand it over to him. He would then invest it for us. Some would go into buying an immediate annuity which would give us an income of $1,000 for the next 10 years. Then he…