Q. I was under the impression that I could make monthly withdrawals from the Thrift Savings Plan and change that amount every year. When I try to calculate how long my chosen amount will last, I get a message saying the amount I have chosen is less than the interest I will accrue. Why is this? Am I forced to choose an amount that is greater than what I want? A. The calculator won’t work unless the amount of your withdrawals exceeds the amount of interest that will accrue each month based on the interest assumption you entered. This is…
Browsing: withdrawal
Q. I am under Civil Service Retirement System Offset. When I took the break in service, I withdrew my CSRS funds (about $50,000; probably $60,000 or more by now). That was in 1998, so I will have to redeposit if I want it to count toward my retirement. I will be 58 next month and am considering retiring in 2013. I have been putting $600 in my Thrift Savings Plan account every payday. I can withdraw money at 59½ and not pay penalties, but it seems like I will be double-taxed. When I withdraw the money from my TSP to pay…
Q. I stopped work in March 2009. I applied for OWCP. The Office of Workers’ Compensation Programs had paid for two back surgeries in 1989 and 1991 and continues to pay for ongoing treatment. I was denied OWCP, so I applied for disability retirement, which was approved. I am still on interim retirement pay. I withdraw some funds from my Thrift Savings Plan to cover me for the time period between OWCP and retirement. I now need to withdraw more for medical reasons. Since I am medically disabled from my federal position, as well as medically retired, what is the…
Q. I plan to take an early out (Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay) effective Aug. 31, 2011. I am under the Federal Employees Retirement System plan. At the time of my retirement, I will be 54 years old. I have read that if you retire before age 55, your withdrawal/rollover is subject to a 10 percent penalty. I have also read that any action can be postponed, but postponed to what age? 55 or 59.5? Does this mean I cannot withdraw and/or roll over to an Individual Retirement Account until I reach age 59.5? I don’t understand why I would have…
Q. I will be 55 in August and plan to retire in January after 22 years’ law enforcement service, two years’ military service, plus three years’ other government service, approximately 27 years’ total government service. All my debt will be paid in November. I would like to take a partial withdrawal from my TSP, $40,000 of the $120,000 currently in my TSP account. If I understand what I’ve been reading correctly I will not be subject to the 10 percent withdrawal penalty correct? Am I required to repay the $40,000 that I withdraw and will I have to claim it…
Q. I am retired (2008) and still maintaining my TSP fund. I don’t plan to dip into it for at least 5+ years. I am now 67 years of age (68 in July), and would like your opinion on the feasibility of moving my entire TSP holdings into the L 2020 Fund. Also, should I take that step, what are the penalties for withdrawal before 2020? A. It is possible for you to move your money into the L 2020 Fund and there are no penalties for withdrawals from the fund.
Q: I am a federal firefighter under the Civil Service Retirement System who will be eligible to retire next year with 28 years of service at age 50. When can I start withdrawing funds from my Thrift Savings Plan without getting penalized? A: If you receive a TSP distribution before you reach age 59 1/2, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10 percent of any portion of the distribution not transferred or rolled over. The additional 10 percent tax generally does not apply to payments that are:…
Q: Let’s see if I’ve got this right. If I request monthly withdrawals from my Thrift Savings Plan account and change the amount each year, I’ll be able to receive a monthly check for life and still be able to build my principal, which I can pass on to my children or grandchildren. Does TSP have such a plan as this? What option is it and how does it work? If I need some emergency money, would I be able to make a withdrawal from my principal? A: You may request a full withdrawal as fixed monthly payments. You set…
Q: I turn 56 in December and I am retiring from the federal government. I would like to take the lump sum out of my TSP to buy a house. If I wait until my separation date of Dec. 7, I won’t get paid until January 2011. The Bush tax cuts expire at the end of December this year. Can I cash out my TSP a few months before to my last day without penalty because the cash out and retirement are in the same year and only a few months apart? Or must I wait until my actual separation…
Q: I just got discharged from the Navy. I was told to look online to find out how to move my money out of TSP but I’m having trouble finding this information. A: Visit www.tsp.gov.