TSP account combination


Correction: The answer in this post contained the age 50½. It has been corrected to 59½.

Q. I am a civil service employee under FERS. I recently retired from the Air Force Reserve. Is there any benefit or detriment to combining my two TSP accounts? None of my military account has contributions from combat pay.

A. The only reason I can think of not to combine them would in the case that you are under age 59½, retired from the military during or after the year in which you reached age 55, and might want to tap the account before you reach age 59½ without incurring the early withdrawal penalty. In that case, the military account would qualify for an exception to the penalty while the civilian account would not.


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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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