TSP withdrawals


Q: I retired two years ago as a CSRS retiree at age 60 and with a nice sum in my Thrift Savings Plan. I made a partial TSP withdrawal at that time to give me cash to pay off some bills. I have decided to buy a second home for tax purposes and would like to withdraw enough money out of my TSP account for the down payment. How could I get $50,000 out of my TSP when I already made a partial TSP withdrawal two years ago? Could I request monthly payments of $25,000 and get those two monthly payment of 25K and then cancel the withdrawals or am I stuck until age 70 ½ to get money out of my TSP?

A: The monthly withdrawals must continue or the remainder of you account will be distributed to you. There is no way to take a second partial withdrawal from you account without triggering a full withdrawal. Unfortunately, you’ll have to move your TSP balance to an IRA and then take the withdrawal.


About Author

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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