Can I withdraw my tsp money if I'm getting out of the military?

[airforceguy429]

I'm getting out soon and I want to withdraw my money. Will I get a penalty? I'm not going to work after the military right away. I plan to go to college so there's no point to leave my money in there if I'm not getting a job to transfer to 401k. Is it possible?

 

[Show-me]

I'm getting out soon and I want to withdraw my money. Will I get a penalty? I'm not going to work after the military right away. I plan to go to college so there's no point to leave my money in there if I'm not getting a job to transfer to 401k. Is it possible?

If you are not 59 1/2 you receive a early withdrawal penalty and you have to pay income tax on the amount removed.

You can roll it into a traditional IRA with a bank or brokerage account.

 

[wantbullishtsp]

Hey airforceguy429,

please dont ake your money out of your tsp. See if you can roll it over to an ROTH ira or just roll it over to another account. You will pay double if you withdraw and the year are going to go by so fast. plan for your retirement now! dont withdraw your money!!!

 

[OMA]

How difficult is the TSP to Roth conversion? Anyone who has completed the transaction able to discuss? My TSP has some contributions made while in a combat zone, so I understand that contribution would be a tax free conversion, while the rest of the conversion would be taxable.

 

[Show-me]

You may need to make a call to tsp.gov on that one. I thought that once they are in the tsp account you can not get them back out without pay the appropriate tax.

 

[OMA]

Thanks- will review the TSP.gov site and consider making the conversion (just retired from the Army). I'll likely wait until after 1 Jan to make this a taxable event for next year when my gross income will be significantly less (unfortunately).

 

[Show-me]

Call them, it should be easier that navigating the site. You have a unique question that should be answer by a person.

 

[OMA]

http://www.tsp.gov/forms/tspbk02.pdf

Link to TSP withdrawal options after leaving military.

 

[OMA]

Used the TSP.gov toll-free number. Person recommended that I talk with a tax advisor regarding the tax-free portion of my conversion. I'll also have to check our IRS's website.

 

[jsperl]

if you do not need the money, do not withdraw your money from the tsp. leave it there and let it grow. you don't have to transfer it to an ira or a 401k. you can always decide do that at a later date. your tsp will come in handy during your golden years, which is only golden, if you have your health and money.

 

[PessOptimist]

Off subject a little. How does TSP show the difference between pre-tax and tax free contributions? Does this show on your quarterly/annual satements?

Just being nosy.

PO

 

[charlesO]

It doesn't; once it's in there it's in there.

Off subject a little. How does TSP show the difference between pre-tax and tax free contributions? Does this show on your quarterly/annual satements?

Just being nosy.

PO