Q: I am considering leaving the federal government and have been contributing to TSP. Can I withdraw my contributions? A: Yes. You are free to withdraw your TSP assets after you retire. You may also be eligible to take withdrawals while you are still employed. Visit www.tsp.gov for the details.
Browsing: TSP withdrawal
Q. I’m 72, and I must make a decision on Thrift Savings Plan withdrawals. I do not need any additional monthly income. Is there any advice/guidance on what options are best to take? Is it better to take a TSP annuity or to purchase one from another insurance company? A. I don’t know why you’d use your TSP assets to buy an annuity if you don’t need income, particularly with interest rates so low. I suggest you manage your TSP and have them send you the Required Minimum Distribution each year. You can then reinvest the money, after taxes, in a taxable account.
Q. I’m a federal law enforcement officer and I’ll be retiring in March after 25½ years of creditable service. I intend to take my Thrift Savings Plan funds when I retire and receive monthly payments based on my life expectancy. I understand this life expectancy option and an annuity are the only ways I can eliminate the IRS 10 percent penalty for early withdrawal since I’ll be 53 when I retire. The TSP manual (on page 16) states I have a one-time opportunity to switch from the life expectancy payments to specific dollar amount payments. I called the TSP representative…
Q: I retire on Dec. 31. How soon after I retire do I have to wait to take a partial withdrawal from my TSP account? A: There is no waiting period.
Q: Can I draw my TSP at age 56 when I retire under FERS? A. Yes.
Q: I am 51 and will retire from federal law enforcement after 24 years of service. Will I have to pay the 10 percent penalty for early withdrawal? I was always told the federal hazardous duty act exempted me from the provision. A: It is my understanding that the exemption applies only to withdrawals from a defined benefit pension plan, and not to withdrawals from defined contribution plans like the TSP. Check with a CPA to be sure before you proceed.
Q. My activity is offering voluntary separation incentive payments/voluntary early retirement. I am 56 years old, have 22 years in service under FERS. Do I get the 5 percent penalty if I accept the offer? Am I allowed to withdraw monthly on my TSP? A. Since you will retire during or after the calendar year in which you reached age 55, you will have access to your TSP account without the early withdrawal penalty.
Q. I am taking VIRA/VSIP and am age 53. I have 26 years time in service and my minimum retirement age with 30 years of service is in 2015 at age 57. When can I access my TSP funds without being subject to the 10 percent withdrawal penalty? 1. Most literature indicates that if you retire early in the year 55 or later, you can withdraw immediately without penalty. 2. The TSP board (I called twice already) says only 59½. 3. The FERS handbook states you can withdraw without penalty at MRA with 30 years (my case 57). I would…
Q. With talk of the Postal Service downsizing I was wondering: I am 48 years old, have 25 years at the Postal Service and four years active military. I realize at 25 years I can retire, regardless of age. But can I access any of my TSP without penalty or must I wait until my MRA of 56? How about the Special Retirement Supplement? Mike Miles: A. If you retire before the calendar year in which you’ll reach age 55, your TSP withdrawals will be subject to the early withdrawal penalty until you reach age 59 1/2, unless you can…
Q. I would like to know the best way of accessing all the money in my TSP account while avoiding IRS early distribution penalties. Here is my situation: * I am CSRS Offset and retiring on Jan. 31 with 30 years of service. * I will turn 55 on Sept. 1, 2012. * I have $92,000 with the TSP. I need to withdraw virtually all of my TSP account to pay off all my high-interest loans. How soon can I withdraw the TSP account funds without the IRS early distribution penalty? A. Since you are retiring during the calendar year…