Q: I have a question about withdrawing money from my Thrift Savings Plan account. I would like to know as many details as possible, to include penalties and how long it takes to receive my funds, as well as if I’m allowed to deposit a lump sum in the future to make up for what I took out. A: You’ll find the information your looking for at http://www.tsp.gov.
Browsing: withdrawal
Q: I plan to retire sometime around age 55 with 28-plus years of federal law enforcement service. I am aware I can make a one-time partial Thrift Savings Plan withdrawal. My question is: Upon retirement, can I request that TSP purchase a Met Life annuity for me with 75 percent of my TSP account and leave the rest untouched and, hopefully, growing until I decide to make monthly withdrawals or turn 70 1/2? The partial withdrawal form does not seem to provide this option, and neither does the full withdrawal form. A: Unfortunately, if you use part of your account…
Q: I am 69 and plan to continue working well into my 70s. Do I have to start my Thrift Savings Plan withdrawals at age 70 1/2 or can I wait until I retire? What are my options? A: You can wait until you retire to begin your withdrawals.
Q: I will have 10 years of service in the billing department of a VA medical center in May. I would like to retire when I turn 63 in January 2012. I would like to know if I can just draw from my Thrift Savings Plan money until I turn 65 and start Medicare then, and not before age 65. I need information on how and if I can do this. Can you please help me with that? A: You may draw from your TSP after you separate through regular monthly payments, which can be adjusted once each year. If…
Q: Someone told me he read an article in Federal Times that said if you wait until the year you turn 55, you avoid the 10 percent penalty on withdrawing from the Thrift Savings Plan. However, he went on to say that you still had to wait until your 55th birthday to avoid the penalty. Is that correct, and if so, where can I find that on the TSP Web site? A: As long as you separate from service during or after the calendar year in which you reach age 55, you may withdraw money from your TSP account, after…
Q. I am 60 years old. I want to make an age-based withdrawal. However, I am paying back a loan made four years ago. The TSP Web site says I cannot make an a withdrawal if I have a loan application pending. Since my loan has been ongoing for four years, the load application is “NOT PENDING. May I still make an age-based withdrawal with an active loan? A. Having a loan outstanding does not prevent you from taking an in-service withdrawal.
Q: I turned 70 years old in November 2009. I intend to continue government service for at least another three years. At what age does the Thrift Spending Plan withdrawal become mandatory if you are still employed by the federal government. A: No, it will apply once you separate from service.
Q: Will the mandatory withdrawals be automatically sent to me in the year I become 70 1/2, or do I have to do something? A: You need to request a withdrawal, of some kind, and then the Thrift Savings Plan will make sure that your distributions meet the manadatory withdrawal requirement, subject to the TSP’s withdrawal rules. Visit www.tsp.gov for the details.
Q: I’m recently separated, keeping the house, and want to refinance in order to release my wife from the original mortgage. I do qualify to refinance, but am upside down by about $30,000. I’m a federal employee, and would have to take the $30,000 out of my TSP retirement account. If I make an early withdrawal from my TSP account that will be used solely for refinancing my home, will I still have to pay tax and the IRS early withdrawal penalty on the $30K? A: None of the circumstances you mention will excuse you from the early withdrawal penalty.…
Q: In 2006, my financial adviser convinced me to take a one-time within-service Thrift Savings Plan withdrawal and roll it into an Individual Retirement Account for purposes of stretching the IRA withdrawals. My money was invested in a variety of funds within the American Funds group (all front-end loaded). Of course, my funds were decimated in 2007 and 2008, and I have yet to recover. Can I roll my IRA funds back into the TSP after having exercised the withdrawal? I am trying to rectify what I have come to believe was a serious error in judgment. I am 65…