Monthly TSP Withdrawal Question

[Scout333]

Hello TSP'rs, Anyone out there still having problems with TSP changing their monthly TSP Distribution amount without being requested to? My first distribution for this year was reduced by TSP. I have had the same amount for over five years. Possible they could have deducted Federal Tax Withholdings?

They did reduce the TSP Distribution amount by a Fed Tax W/H amount. I don't need the w/h amount anyone know how to cancel the w/h?

 

[TSATSO]

They did reduce the TSP Distribution amount by a Fed Tax W/H amount. I don't need the w/h amount anyone know how to cancel the w/h?

Same thing happened to me. Had the same payment for several years, and in the past they never took out any federal withholding. Now for first payment of 2023 they suddenly decide to withhold fed tax. Waiting to see if you get any helpful answers.

 

[Tsunami]

Same thing happened to me. Had the same payment for several years, and in the past they never took out any federal withholding. Now for first payment of 2023 they suddenly decide to withhold fed tax. Waiting to see if you get any helpful answers.

Yikes, sounds like yet another reason to leave the TSP. I haven't had that problem, and was successful at changing the amount of my monthly withdrawal starting with this month's payment (and they actually got it right!)...but maybe that's only since I specifically requested to have no taxes taken from it again. I think if I hadn't said that when I spoke to the rep online they would have taken out taxes.
I like to adjust our federal annuity payments through OPM each year to manage taxes, but this year OPM started a new process where they're making that somewhat of a nightmare. You can no long specify a specific amount to take out...nope, they won't do that anymore...instead they use some unknown process that takes several days to calculate your withholding after you fill out an online form.
So through trial and error you dial in the amount you want taken out by changing the "extra withholding" amount.
What a joke.

I have a different TSP question...I'm hearing on the news that due to the deficit ceiling nonsense the Treasury is now going to stop making payments out of federal employees retirement accounts.
Uh, so starting next month they're not going to be making monthly TSP installment payments???!!!!
Is this true? Has this happened before?

Without the TSP income, my wife and I can get by on savings into July, and then after that I can cash in I bonds...that will last 5 months...then we're screwed...time to panic...this isn't good...and I'm thinking that if I go ahead and try to roll over my TSP to an IRA right now to be done with them, they won't let me, since all withdrawals from TSP accounts are on hold????

 

[Tsunami]

Yikes, sounds like yet another reason to leave the TSP. I haven't had that problem, and was successful at changing the amount of my monthly withdrawal starting with this month's payment (and they actually got it right!)...but maybe that's only since I specifically requested to have no taxes taken from it again. I think if I hadn't said that when I spoke to the rep online they would have taken out taxes.
I like to adjust our federal annuity payments through OPM each year to manage taxes, but this year OPM started a new process where they're making that somewhat of a nightmare. You can no long specify a specific amount to take out...nope, they won't do that anymore...instead they use some unknown process that takes several days to calculate your withholding after you fill out an online form.
So through trial and error you dial in the amount you want taken out by changing the "extra withholding" amount.
What a joke.

I have a different TSP question...I'm hearing on the news that due to the deficit ceiling nonsense the Treasury is now going to stop making payments out of federal employees retirement accounts.
Uh, so starting next month they're not going to be making monthly TSP installment payments???!!!!
Is this true? Has this happened before?

Without the TSP income, my wife and I can get by on savings into July, and then after that I can cash in I bonds...that will last 5 months...then we're screwed...time to panic...this isn't good...and I'm thinking that if I go ahead and try to roll over my TSP to an IRA right now to be done with them, they won't let me, since all withdrawals from TSP accounts are on hold????

OK, per this article: https://www.bloomberg.com/news/arti...pecial-measures-to-avoid-breaching-debt-limit
it sounds like that was just bad reporting by the CBS Evening News or wherever I heard that statement about halting payments from feds retirement accounts.

 

[Scout333]

In past years TSP has only been impacted by holding interest income earnings for the G Fund but they have always made the interest earned payments good. Expect that will happen again this year.

 

[Scout333]

In past years TSP has only been impacted by holding interest income earnings for the G Fund but they have always made the interest earned payments good. Expect that will happen again this year.

Thanks for info passed on by TommyIV
Treasury Secretary Janet Yellen Takes Measures to Ease Debt-Ceiling Woes


The Treasury Department will stop fully investing in a government investment in the G-fundin a series of extraordinary measures, or accounting maneuvers, the Treasury Department is taking to keep paying the government's bills.

“By law, the G Fund will be made whole once the debt limit is increased or suspended,” she said. “Federal retirees and employees will be unaffected by this action.”

 

[PessOptimist]

Not sure if this belongs under question or should be a new thread.

On Wednesday 1/25/23 I called the thrift line to stop my monthly withdrawal. About 1 hour on hold. Rep accessed account and stated it showed no monthly withdrawal. Been recieving it since July 2019. She stated she would submit a stop anyway and it may be because "they were getting ready to close down" and I should call back tomorrow.


The next day I logged in to TSP dot GOV and the option to start a new withdrawal was available so maybe the existing one was stopped?


No texts or emails about changing anything. I did get an e-mail next day asking about my satisfaction concerning the thriftline experience. I haven't answered it yet.


Seems as if the new system is missing a lot of stuff from the old system. Not very reassuring.


Guess I wait and see what happens on the 15th.

 

[nasa1974]

Sure glad I'm not drawing anything out yet. I don't plan too either. I'll transfer all my stuff over to my Edward Jones account before I'm forced to start using it. This new system is so screwed up.

 

[papahotel66]

As a new retiree y'all are scaring me!

 

[PessOptimist]

Not sure if this belongs under question or should be a new thread.

On Wednesday 1/25/23 I called the thrift line to stop my monthly withdrawal. About 1 hour on hold. Rep accessed account and stated it showed no monthly withdrawal. Been recieving it since July 2019. She stated she would submit a stop anyway and it may be because "they were getting ready to close down" and I should call back tomorrow.


The next day I logged in to TSP dot GOV and the option to start a new withdrawal was available so maybe the existing one was stopped?


No texts or emails about changing anything. I did get an e-mail next day asking about my satisfaction concerning the thriftline experience. I haven't answered it yet.


Seems as if the new system is missing a lot of stuff from the old system. Not very reassuring.


Guess I wait and see what happens on the 15th.

I got a text from TSP on Wednesday 2/15/23 stating my "fixed installment >=10 Years Payment" will be issued on February 17, 2023. It was and deposited in my checking account on 2/16/23. I will have to try to stop it again on the thriftline Tuesday or after.

My online TSP account did start showing buttons for withdrawals and rollovers. Maybe I should try to create a different partial distribution. Maybe not. What a clusterflop.

PO

 

[evilanne]

As a new retiree y'all are scaring me!

Congrats on your retirement! Don't worry! Once you get your payments started, it works like clockwork. Never had any issue with OPM payments in the last 7 years, not even during government shut down. No issue with TSP until the change last year, but still getting payments consistently.

Life is much better when you avoid the fear based news.

 

[pethsm]

I got the same notification, and received an additional deposit into my bank account for the "glitch". But doing my taxes today, I obviously had way too little being taken out, but there is not way to look or change anything online. I really dread calling and trying to change my monthly withdrawl amount based on the experiences many have communicated here. Will it be fixed anytime soon?

 

[ttn]

Congrats on your retirement! Don't worry! Once you get your payments started, it works like clockwork. Never had any issue with OPM payments in the last 7 years, not even during government shut down. No issue with TSP until the change last year, but still getting payments consistently.

Life is much better when you avoid the fear based news.

Does tsp web site provide the option to apply monthly installment withdraw? I only saw 2 options to withdraw partial and total withdraw on my account.

 

[PessOptimist]

I got a text from TSP on Wednesday 2/15/23 stating my "fixed installment >=10 Years Payment" will be issued on February 17, 2023. It was and deposited in my checking account on 2/16/23. I will have to try to stop it again on the thriftline Tuesday or after.

My online TSP account did start showing buttons for withdrawals and rollovers. Maybe I should try to create a different partial distribution. Maybe not. What a clusterflop.

PO

Update: I called thriftline on Wednesday 3/1/23 and to my surprise got to speak to a human after about 5 minutes. She told me she could not stop the payment because it was after 12 noon EST and the system was "processing". Called today (3/3/23) about 1100EST and the rep said she saw the "equal payments" and stopped them. Apparently they don't always call them withdrawals or installments. I asked about confirmation and was told i would "most likely" receive an email. Nothing yet and not really expecting anything.

PO

 

[nasa1974]

Update: I called thriftline on Wednesday 3/1/23 and to my surprise got to speak to a human after about 5 minutes. She told me she could not stop the payment because it was after 12 noon EST and the system was "processing". Called today (3/3/23) about 1100EST and the rep said she saw the "equal payments" and stopped them. Apparently they don't always call them withdrawals or installments. I asked about confirmation and was told i would "most likely" receive an email. Nothing yet and not really expecting anything.

PO

Good luck.

 

[ttn]

Good luck.

It looked like the statement about software problem has been removed from “Distribution Options “ about monthly installment withdraw

 

[PessOptimist]

Update: I called thriftline on Wednesday 3/1/23 and to my surprise got to speak to a human after about 5 minutes. She told me she could not stop the payment because it was after 12 noon EST and the system was "processing". Called today (3/3/23) about 1100EST and the rep said she saw the "equal payments" and stopped them. Apparently they don't always call them withdrawals or installments. I asked about confirmation and was told i would "most likely" receive an email. Nothing yet and not really expecting anything.

PO

The 15th has come and gone and no withdrawal taken from TSP. I got no confirmation about it but it appears it has been stopped.

PO

 

[waltj]

Not sure this is the right place, but how do I find the page for changing fed withholding?

 

[tsptalk]

The AI response: I hope it helps

TSP Tax Withholding Adjustment​

If you’re a participant in the Thrift Savings Plan (TSP), a retirement savings and investment plan for Federal employees and members of the uniformed services, you may need to adjust your tax withholding at some point. Here’s how to do it:

• Request a change in tax withholding: You can request a change in the percentage of federal income taxes withheld or a waiver of federal income tax withholding altogether for certain types of payments.
• Use Form TSP-77: To change your tax withholding, you’ll need to complete Form TSP-77, “Tax Withholding Election.” You can download the form from the TSP website or call the ThriftLine (1-877-968-3778) to request a copy.
• Submit the form: Once you’ve completed the form, you can submit it to the TSP by mail or fax. You can also make changes to your tax withholding online through the TSP Account Access or by calling the ThriftLine.
• Consider consulting a tax professional: The tax rules associated with TSP withdrawals can be complex, so it’s a good idea to consult with a qualified tax professional to ensure you’re making the best decision for your situation.

Important notes:​

• The TSP does not withhold for state or local income tax, but you may still be required to pay these taxes on your TSP distributions.
• If you’re a resident of a state with a state income tax, the TSP will report all distributions to the state of residence at the time of payment.
• You should review the tax rules associated with TSP withdrawals carefully and consider consulting a tax professional to ensure you understand the implications of changing your tax withholding.