Questions regarding the TSP withdrawals


Q. I am planning to retire in Jan 31, 2020. At that time I will be 56 years old with 33 years of service. I am planning to take a lump-sum payment and monthly withdrawals from my TSP account. Will I be penalized for withdrawing my TSP? If so, how much? How much tax do I have to pay? How long do I have to wait to receive a lump-sum payment from the TSP?

A. Under the circumstances you describe, your post-retirement TSP withdrawal will not be subject to the Early Withdrawal Penalty. Your withdrawal will be taxed as ordinary income and the taxes due will be determined when you file your tax return for the year in which the withdrawal is received. You’ll have to ask the TSP how long it will take them to process your payment. Processing times vary.


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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 and view his blog at

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