Retiring/TSP process questions

[quabit]

I accepted the DOD's DRP and will over the age of 60 when I retire in the fall. I have a few questions that I hope you can help me out with. Right now, I do not plan to move my TSP but might later. Right now I need to understand what I need to do to start the distribution on time to ensure a smooth migration from work to retired life.

1. What is the process to request distributions. Is it done online or does it take a phone call. I have read the online pamphlet titled "Distributions" but it doesn't provide a step-by-step guide.

2. How soon can I submit a request for the distribution to begin or do I have wait until after 30 Sep when I am officially retired.

3. Can I select the deposit date? I would like it to start in mid Oct 25 to ensure a smooth transition

4. Can you have multiple deposit dates, or it is once a month only

3.. Once requested what is the estimated time for distributions to begin so I can plan for that in my budget.

Thanks

 

[James48843]

I can’t answer most of those, but I know that when I retired three years ago, I could not withdraw until my agency formally notified the TSP that I had switched to a non-earning status. I had planned for, and it was, about 75 days after I put in my paperwork at my agency, before everything, including TSP, recognized me as being retired. I think a good rule of thumb is to plan for 90 days after you quit working before all the faucets of money get turned on. Safe enough up to carry you through.

Once you are properly in the system as a retiree, it is very quick to get paid. I can enter a request online for a chunk of money(I took out 30k to buy a car) and it takes about a week to a week and a half to clear and make it to the bank.

I now get a monthly payment, and, from time to time, I get a chunk of cash out to do stuff.

 

[Zapple]

I can't answer your questions, but wanted to point something out that may help you feel more at ease if there are delays accessing your TSP and getting your budget straightened out. You may be owed a lump sum, possibly sizeable, for unused annual leave. I know I am (I too took the deferred resignation with DOI; I am full retirement eligible). According to people I've asked, the lump sum gets paid out in a timely fashion after the retirement date, i.e. Sept. 30 in our cases.

 

[exnavyew]

I accepted the DOD's DRP and will over the age of 60 when I retire in the fall. I have a few questions that I hope you can help me out with. Right now, I do not plan to move my TSP but might later. Right now I need to understand what I need to do to start the distribution on time to ensure a smooth migration from work to retired life.

1. What is the process to request distributions. Is it done online or does it take a phone call. I have read the online pamphlet titled "Distributions" but it doesn't provide a step-by-step guide.

2. How soon can I submit a request for the distribution to begin or do I have wait until after 30 Sep when I am officially retired.

3. Can I select the deposit date? I would like it to start in mid Oct 25 to ensure a smooth transition

4. Can you have multiple deposit dates, or it is once a month only

3.. Once requested what is the estimated time for distributions to begin so I can plan for that in my budget.

Thanks

I'd suggest calling TSP directly to get your questions answered.
Couple of items, call by phone several times to get different customer rep's.
Some are much better than others.
Also, email TSP, repeatedly if you have too, so you can get answers in writing.
Good Luck!

 

[quabit]

Thank you everyone for the replies. I do plan to sell back annual leave just in case. I have planned for months of reduced overall income so I will be good, I'm a planner so I like to be safe than caught off guard as I know we all are.

James you are correct, I reached out to TSP and finally got an email back for some of my questions. They confirmed that the option to select a withdraw or to setup distributions will not be made available in my TSP account until after they get notified. They said 60-90 days. Wish they had put that in their "Distribution" pamphlet.

As for setting up multiple distribution dates etc they failed to answer so I replied asking for answers.