nasa1974's retirement story

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Just got a phone call today from TSP verifying my withdrawal request. I was told it would take 3-5 business days for the funds to be electronically transferred to my checking account once the withdrawal was made from my TSP account. I mailed all the paperwork on Friday, June 14th.
 
OK! So yesterday I got my phone call from TSP about my "partial withdrawal". In the mail yesterday my wife gets her notification from TSP. In part this is what it says.

Dear Spouse of TSP Participant:

You are receiving this notice regarding the Thrift Savings Plan (TSP) account of your spouse as explained below:

According to our records, your spouse is no longer employed by the Federal Government and has chosen a full or partial withdrawal of hos or her Thrift Savings Plan (TSP) account. Your spouse may transfer all or a portion of the amount withdrawn to an IRA or other eligible retirement plan. Any remaining amount will be paid to your spouse.

By law, the TSP is required to notify you of your spouse's request. However, this notice does not guarantee or imply that you have a right to the money in your spouse's account or to any additional information about the account. Moreover, this notice will not delay payment from the account.

If you have any questions, call the toll-free ThriftLine at.....

How's that for a notice.
 
I just checked my TSP account and the partial withdrawal has been taken out of my account but it hasn't shown up at my Credit Union yet. They did say it could take 3-5 business days for the Electronic Fund Transfer (EFT) to happen. Hopefully it will happen later today or tomorrow. I will continue the story.
 
My TSP "partial withdrawal" posted to my Credit Union this morning. I mailed the form on the 14th. So it took two weeks for the whole process to run its course. Not bad.
 
They took 20% off the top for Federal taxes. I wonder how bad local and State taxes will be. :mad: I guess I will find out next February or March when I file my taxes.
 
nasa1974 said:
They took 20% off the top for Federal taxes. I wonder how bad local and State taxes will be. :mad: I guess I will find out next February or March when I file my taxes.
Click to expand...

Ouch! But thanks for sharing nasa -- good to know. Hope you get some of that back next winter/spring when you file your return -- I'll be interested in hearing as I'm considering a partial w/d at some point in the next year or so as well.
 
Khotso said:
Ouch! But thanks for sharing nasa -- good to know. Hope you get some of that back next winter/spring when you file your return -- I'll be interested in hearing as I'm considering a partial w/d at some point in the next year or so as well.
Click to expand...

Depending how much you need you have to remember to add that extra for the tax man. Tax time will be interesting.
 
Tax time requires at least a year ahead in planning - especially now that you have retired. Try and keep what is yours.
 
Birchtree said:
Tax time requires at least a year ahead in planning - especially now that you have retired. Try and keep what is yours.
Click to expand...

Good advice. I may get burned by the tax man but I had to pay off what was left of my daughters school loans. Now I will have some extra spending or investing money.
 
Nasa,

Yeah, they get their 20 % right off the top...I didn't get hit when I rolled most of my TSP to my IRA, but my monthly withdrawal from my remaining TSP balance gets the 20% deducted, before it ever leaves the TSP ! It's not "adjustable", either...at least I haven't found a way to change it ! :nuts: You just gotta factor that in when you make your projections on next year's taxes...glad I don't have a State tax to worry about...


Stoplight...
 
Stoplight said:
Nasa,

Yeah, they get their 20 % right off the top...I didn't get hit when I rolled most of my TSP to my IRA, but my monthly withdrawal from my remaining TSP balance gets the 20% deducted, before it ever leaves the TSP ! It's not "adjustable", either...at least I haven't found a way to change it ! :nuts: You just gotta factor that in when you make your projections on next year's taxes...glad I don't have a State tax to worry about...


Stoplight...
Click to expand...

Your right about the 20% right off the top but you can ask for them to take an additional amount out if you want. :blink: Yeah, right!!!
 
Friday I made my final payment on the school loans for my daughters and the electronic payment posted yesterday in my checking account. I'm debt free except for my house payment. But I will be looking at a new vehicle within the year. So then I will owe on the house and a truck. But for the time being I have some extra income. :D
 
nasa1974 said:
Your right about the 20% right off the top but you can ask for them to take an additional amount out if you want. :blink: Yeah, right!!!
Click to expand...


LOL !!! Yeah, I DID see where I could change that !!!


nasa1974 said:
Friday I made my final payment on the school loans for my daughters and the electronic payment posted yesterday in my checking account. I'm debt free except for my house payment. But I will be looking at a new vehicle within the year. So then I will owe on the house and a truck. But for the time being I have some extra income. :D
Click to expand...


SWEET !!! Nice job, Nasa...and you are a GOOD Dad !!!


Stoplight...
 
Hi, Nasa ! Hope all is well with you...

I haven't received mine in the mail yet, but I happened to be on-line, adjusting my Fed withholding for next year, and saw it was available for download !

Based on my first cut on taxes, it looks like I may owe a couple hundred bucks...which is EXACTLY where I wanted to be !

Stoplight...
 
Stoplight said:
Hi, Nasa ! Hope all is well with you...

I haven't received mine in the mail yet, but I happened to be on-line, adjusting my Fed withholding for next year, and saw it was available for download !

Based on my first cut on taxes, it looks like I may owe a couple hundred bucks...which is EXACTLY where I wanted to be !

Stoplight...
Click to expand...

Good work!
 
Retirement has been good. No cruises planned for this year, yet. :D Actually this year should be pretty good, cruise or not.
Our oldest daughter gave birth to her first child on the 14th and Emma is our first grandchild. Our youngest daughter just told us they are expecting in early September. Let the spoiling begin. :D The wife was working for a temp agency and quit just before the holidays for a couple of reasons, mostly to help the older daughter get things ready for their first baby. Now with our other daughter expecting I'm not sure if the wife really wants to go back to work. The extra income the wife brought in was nice and I still work part time at Best Buy. But I plan to look into social security this summer and see what our options are. I really don't want to tap my TSP until I'm forced to. Last year was really good and if I can make even half as much this year that I made last year I'll be happy. That's it for now.
 
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