TSP withdrawal


Q: I plan to retire in 2015 under FERS at age 56 with 31 years of service. Can I withdraw all my money I have in TSP ($500,000) at once, or is there a limit on how much can be withdrawn? I believe because I have the correct MRA, there would not be a penalty for withdrawal. Is this correct?

A: You may withdraw all of your money at once after you separate from service. Your MRA has nothing to do with 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.

1 Comment

  1. But a $500,000 TSP withdrawal all at once would be taxed as income, right? The highest tax bracket right now, I believe is 33%, so you would owe the IRS about $166,000.

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