TSP contributions and withdrawls


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.


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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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