Q. If I take the VERA at age 55, can I roll my Fidelity IRA into my TSP and take monthly payments for all of it starting at 55 without the 10 percent penalty? Also, what is the time lag typically from retirement to get your first FERS annuity payment and TSP monthly payment? In other words, how long would I be out of pocket when I retire until those payments kick in?

A. Since you’ll retire during the calendar year in which you’ll reach age 55, you will be able to take distributions in retirement without incurring the 10 percent early withdrawal penalty. This applies to all your TSP account money, including money transferred in from an IRA. The time to process a TSP withdrawal request can vary, but I would expect two weeks if there are no problems.


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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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