Early TSP withdrawal for son's school expenses


Q: I am 58 years old and will turn 59 1/2 in March, at which point I will be able to empty my Thrift Savings Plan account without an early distribution penalty. However, I would like to access these funds now to pay for some of my son’s law school expenses. He is 30 years old and not a dependent. Is there any reason why I could
not roll over some of my TSP funds into a traditional individual retirement account and then withdraw the funds from the IRA now so that I can use the money for the expenses immediately? Also, my reading of the IRA early distibution rules indicates that the only requirement is that the money be spent for educational expenses for a child and does not require that child to be a dependent. Is that correct?

A: This is not really a federal pay or benefits question. It would be best to ask your tax preparer.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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