Q. I just read an article on IRS 72(t) and SEPP regarding withdrawal of funds from 401(k) (TSP) and IRA prior to age 59.5. I’ve never heard of this and haven’t seen it mentioned in your column either. Is there a specific amount of withdrawal I should be taking monthly according to IRS rules and calculations in order to avoid penalties? I retired at age 55 from the U.S. Postal Service on a VERA retirement (FERS) in March. I started withdrawal of TSP in May. Does this IRS 72(t) and SEPP apply to my situation? Will I be slapped with…
Browsing: TSP withdrawal
Q. I work for the Department of Interior and I have accepted a VERA Early Out. I would like to take my whole TSP account and rollover to an IRA. Some say there is not a 10 percent penalty for simply rolling over to an IRA and some say there will be one. I am age 50. I do understand if I make withdrawals from the IRA, they are subject to the 10 percent penalty.
Q. I will be retiring in 2019 under FERS. I’m not a pick fan of annuities but I have read in the past that the MetLife annuity tied into the TSP plan is relatively a good annuity with low costs. I also understand that this MetLife annuity might get even better and easier with the changes now being put into place under the new TSP distribution changes. Can you comment on this specifically?
Q. I have been found disabled by the Social Security Administration (FERS claim is pending). Can I make a withdrawal from my TSP account without the 10 percent penalty? What documentation is needed? I am 52 with 26 years of service.
Q. I retired at age 62 with over $400,000 in my TSP account. I made a lump sum withdrawal in the amount of $120,000 to an annuity IRA account with Pacific Life through Edward Jones, which pays $500 for life and the account balance will never drop below the yearly gain (which holds its value at the account anniversary). The account value is now over $130,000. Upon my death the remaining funds are distributed to my beneficiaries. My Edward Jones financial advisor is suggesting that I consider transferring my TSP balance to an account with Edward Jones. Since I made…
Q. My agency, Veterans Affairs, is firing many employees for performance under the VA accountability act. I have 28 years of service after buying back seven years of military service and am 49. Will I get non-reduced retirement and access to my TSP withdrawals if I am given involuntary separation due to performance?