New people question...

[Snarg]

My wife and I just started a TSP account and now have a few questions:

1) We started our account through MyPay (the military thing). Looking at the TSP website, we need a TSP pin to access our account. When/where do we get the PIN?

2) Once money goes in, how do we get money out? Simplified example: This week we put in $100. Next week we want our $100. Can we get it out? If so, how? Do we pay a penalty?

 

[tsptalk]

Welcome Snarg!

1) We started our account through MyPay (the military thing). Looking at the TSP website, we need a TSP pin to access our account. When/where do we get the PIN?

Go to www.tsp.gov and click on
"Account Access".
Then go to "Account Transactions".
From there it will say, "If you have forgotten your PIN click here"

That should be where you ask for a new PIN.

2) Once money goes in, how do we get money out? Simplified example: This week we put in $100. Next week we want our $100. Can we get it out? If so, how? Do we pay a penalty?

Yes, you pay a penalty and taxes on those withdrawals. Retirement plans are set up that way to highly discourage you from taking your money before you are eligible.

Thanks for joining us!
Tom

 

[Snarg]

Yes, you pay a penalty and taxes on those withdrawals. Retirement plans are set up that way to highly discourage you from taking your money before you are eligible.

Ok, thank you for that information. The PIN is on the way (10 days!!). Any idea what percentage the fee is? Do you withdraw money from the Account Access page? I did not have an opportunity to select a fund when we started the account, when will I get that chance?

Sorry for all the questions. Is it obvious we are new to this?

Thanks for joining us!
Tom

Thank you for letting us

 

[LA_Guy]

I assume you're Uniformed Services. The link below contains your answer.
http://www.tsp.gov/faq/how-do-i_uniserv.html

 

[tsptalk]

Any idea what percentage the fee is? Do you withdraw money from the Account Access page? I did not have an opportunity to select a fund when we started the account, when will I get that chance?

You should be able to pick a fund as soon as you have access.

If you are still considering moving your money in and out, you may want to forget about the TSP and go into a non-retirement account mutual fund. You will have more access to your money without an early withdrawal penalty. Those penaties will kill your account balance in TSP or any IRA. Particularly if you are not getting matching funds.

I think this is the first time I told someone NOT to use TSP.

Good luck!

 

[Snarg]

If you are still considering moving your money in and out, you may want to forget about the TSP and go into a non-retirement account mutual fund. You will have more access to your money without an early withdrawal penalty. Those penaties will kill your account balance in TSP or any IRA. Particularly if you are not getting matching funds.

No, I fully understand a long term investment. I'm trying to convince my wife it's a good thing however, she was curious about possible penalties and fees associated with pulling money out early.

Thank you for your time and help.