Q. I will retire at 55 years old on the CSRS retirement in September 2011 with 34 years of service. I don’t need an annuity from my TSP, rather I just want to take money out ad hoc for vacations, etc. I understand you can make a one-time withdrawal of $1,000 or more, but I want to maybe withdraw $2,500 in 2011, then $2,000 in 2012, etc. I don’t want a set monthly withdrawal, but use it like a checking account. Is this possible? I’ve been searching and can’t seem to find this scenario. A. The TSP does not permit…
Browsing: TSP withdrawal
Q: If you have a TSP account and you have been gone from working for the federal government since 2006, can you withdraw your funds without any early withdrawal penalty fees? A: Only if you separated from federal service during or after the year in which you reached age 55, have reached age 59 1/2, withdraw funds using a series of Substantially Equal Periodic Payments, use the money to buy a life annuity, or meet one of the specific exemptions to the penalty, which include disability and certain medical expenses. See the notice at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf for more information.
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 hope to retire when I turn 56. I have been investing in TSP since 1987, contributing the maximum amount allowed (15 percent). My question is, at age 56, can I set up and annuity with TSP requesting a small amount a 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.
Q: Is it possible to set up monthly payments from your TSP and then later have TSP use part of your funds to purchase an annuity for you while continuing the monthly payments with the rest? Or must both withdrawals be set up at the same time? A: It is not possible to take a partial withdrawal for a TSP annuity while continuing monthly payments.
Q: I retired from Federal Service under FERS at the end of May of this year with 24 years of service. I also turned 70 in early May of this year. My plan had been to purchase a lifetime annuity through TSP (METLIFE) in August of this year as annuity interest rates had typically been higher in August for the past few years (2006, 2007, 2008 and 2009). Unfortunately the rates have steadily decreased since my retirement and are now down to 2.750 percent, which is equal to the low of March 2009. Obviously this was not a good time…
Q: What are the benefits/options of waiting to retire in the year I turn 55 with my TSP funds? A: If you separate from federal service during or after the year in which you reach age 55, you will have access to your TSP funds without being subject to the early withdrawal penalty.
Q: After I retire and begin to withdraw TSP, do my accounts still draw interest on the remaining balances in the various funds? A: Yes.
Q: I’m a CSRS employee who is going to retire at age 57. Can I take monthly payments out of my TSP without penalties? A: Yes, once you retire.
Q: Is it possible to set up monthly payments from your Thrift Savings Plan account and then later have the TSP use part of your funds to purchase an annuity while continuing those payments? Or must both withdrawals be set up at the same time? A: It is not possible to take a partial withdrawal for a TSP annuity while continuing monthly payments.