Q. Will the TSP allow retirement withdrawals by fund allocation? I want to set aside a portion of my account in the G Fund for secure monthly income. I would like to keep the remainder as a growth fund – primarily invested in stocks and bonds. I want to avoid drawing any percentage out of this growth fund during temporary or cyclical market reversals. If this withdrawal strategy is not allowed, is transferring funds out of TSP the only way to achieve my money management goals?
A. The TSP does not allow targeted withdrawals. You can “synthesize” a targeted withdrawal by taking a withdrawal and then rebalancing your account to the allocation that would have been left if you had taken the withdrawal from the fund or funds of your choice.