TSP withdrawal process


Q. I am retiring at the end of December and wish to start a partial monthly withdrawal of my TSP. Can I set aside an amount for the monthly withdrawal and leave a balance in the TSP to take as a final withdrawal at a later date? Can the amount of the final withdrawal be rolled into an IRA at that time?

Which form do I use to start the monthly withdrawal process? Do I wait until I am officially retired before I file the form and how long does it take for the payments to start?

A. You may initiate a series of monthly withdrawals and then terminate that series at a later date, roll your remaining TSP balance over to an IRA (except for any RMD that is due) and then close your TSP account. You’ll use for TSP-70 to request the monthly payments. Contact the TSP for information about filing and processing times.


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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