Avoiding TSP Withdrawal Penalty with SEPP
It’s no secret that you can avoid the 10% TSP withdrawal penalty on federal retirement plans like the TSP if you retire upon reaching age 55 (or later). However, if you are not yet at this stage and you’re still interested in retirement/separation from federal service, there may be a way to avoid the TSP Early Withdrawal Penalty. It’s called…
Read MoreTSP Withdrawal Strategies and Goals – Immediate Spending
Considering the bewildering array of Thrift Savings Plan withdrawal options and the complexity of the associated tax treatment, it is no surprise that a lot of people simply choose the easiest TSP withdrawal strategy, regardless of their specific needs. However, it can be wise to seek out good TSP advice and then possibly make use of a combination…
Read MoreThe 20% Tax Trap Between a TSP Withdrawal and IRA Rollover
Most federal employees are aware that upon leaving federal service they are able to conduct a TSP IRA Rollover without being taxed on the rollover. This tax deferral works just fine if your TSP withdrawal application seeks to have all or part of the account balance moved straight to the IRA or another employer plan. However, if the…
Read MoreRetirement Benefits Court Order
When you make a TSP withdrawal request, one of the things that should be considered before approving the request is whether there is any Retirement Benefits Court Order that takes precedence over your withdrawal. The only type of distribution made to you that takes precedence over a court order is a Required Minimum Distribution (RMD) mandated by the…
Read MoreAuto Enrollment Contributions and Refunds Policy
If you need money and want to raid your federal savings plan accounts, a TSP withdrawal (or TSP loan) is not the only option. Under certain conditions, new federal employees may also be able to request a refund of your auto-enrollment contributions. This is available only for employee contributions made in the first 90 days of the automatic enrollment…
Read MoreTSP 79: Changing Your TSP Withdrawal Request
Like most things in life, a TSP withdrawal that has been processed cannot be “unprocessed.” This means you cannot return all the money and say thanks, but no thanks. But depending on the kind of withdrawal option(s) you chose, you may still have the option of changing TSP Withdrawal Request. If you have accepted a single payment…
Read MoreTSP Special Withdrawal Considerations – Spouses’ Rights
For most federal employees, a TSP withdrawal after separating from federal service is simply a matter of filling up Form TSP 70 or TSP 77. However, there are some special considerations that some people will need to factor in. For example, one of these considerations is about TSP withdrawal spousal rights. These TSP Withdrawal Spousal Rights, insofar as it impacts…
Read MoreList and Summary of TSP Withdrawal Forms
For those considering a TSP withdrawal, one of the key things to do is select and fill out the correct form based on what kind of withdrawal you are planning to make. The Thrift Savings Plan has different forms for all the different types of withdrawals. Here are a listing and brief summary of some of the most…
Read MoreTSP Withdrawal Calculator : TSP Annuity and Monthly Payments
One of the options you have, when you use the TSP withdrawal calculator available through the Thrift Savings Plan website, is to better understand what TSP Annuity options are available to you. The option you may pick, a full withdrawal, would be conducted using TSP-70 form, or you may choose a partial TSP withdrawal. The…
Read MoreTSP Withdrawal Into A TSP Life Annuity
One of your many options, when you want to make a TSP withdrawal, is to use all parts of the funds in your account to buy a TSP Life Annuity. This option guarantees you a monthly TSP annuity payment as long as you are alive. If you choose a life annuity product that pays survivors…
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