Q. I am a federal employee considering retiring at age 64. I want to withdraw my Thrift Savings Plan funds in one lump sum, which by then will be approximately $400,000. At what tax rate can I expect to be hit upon withdrawal?
A. Your withdrawal will be subject to 20 percent federal tax withholding. Read the document at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf for more information.