Partial Withdrawal

[prowler]

Is my understanding correct wherein only one (single) partial withdrawal of TSP funds is permitted prior to a full [or annuitized] withdrawal? I am a FERS retiree, age 67, who would like to withdraw approx $5K each year before my 70th birthday in order to supplement annual living expenses. This doesn't seem to be a plan that will be allowed by TSP.

However, if I pursue this course of using TSP funds for supplemental living expenses - and if I understand the TSP rules correctly - my best alternative might be to withdraw approx $15K as a one-time partial withdrawal and roll it into a MM account to divide and use as 3 years living expenses. Then in a few years, during RMD, I can opt to leave my money in the TSP and receive regular monthly payments either as an annuity or as a fixed amount - or take the larger step and make the full withdrawal.

Sound right? Thanks.

Roger

 

[tsptalk]

That sounds right Roger.

"If you did not make an age-based in-service withdrawal from your account while you were still employed by the Federal Government, you can take out part of your TSP account balance and leave the remaining amount in the TSP until later.

"Partial withdrawals are paid only as a single payment. You can have the TSP transfer all or part of the payment to a traditional IRA, eligible employer plan, or Roth IRA (if you are eligible). "

Welcome, by the way!

 

[prowler]

Hi Tom - Thank you for your prompt reply. Also, thank you for the "welcome".

Roger

 

[nnuut]

Prowler, welcome to the Message Board.
Norman

 

[prowler]

Thank you, Norman. Love you avatar!

 

[nnuut]

Hey! That's my real face Buddy! :notrust:
:laugh: