Disablity retirement with TSP


Q. I am 58 years old and have been with the Transportation Security Administration for 14 years. My TSP account is down to whatever the government has put into it. I had taken out money to live on, as I am looking at a disability retirement due to some vertigo issues. They told me I can’t take out the final amount until I am 59½ — that will be another year. Is there a way to get those funds released prior to that due to hardship? I have used up all my sick and annual leave and savings due to this malady.

A. Here are the options for getting to your TSP money before you reach age 59½:

1. You will have access to your funds as soon as you are separated from federal service.
2. You may be able to take a loan now, if you are still in pay status.
3. Or, you may be able to qualify for an in-service withdrawal based on financial hardship. See the information at https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/inservicewithdrawals/financialHardship.html for details.


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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