TSP Withdrawal Plans

[Rolo]

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Wheels wrote:

Actually, the scenarios are sort of moot for me since I will likely be retiring before I turn 55. To avoid paying the 10% penalty, I will have to withdraw my funds in substantially equal payments based on the IRS life expectancy tables. This strategy will limit me to about 3% a year, at least for thye first few years.

This would be a good place for someone who knows more about this stuff to jump in and tell me a better way.

Dave

If you did not already know, you have to recalculate every year. You do not just calculate it once and keep that figure indefinitely. That is the best way that I know to make withdrawals before 59-1/2.

 

[reg]

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I plan on doing just that. Have also rolled IRA's to the TSP where performance of the TSP exceeded the IRA.

Would be interested in comments about the reverse roll over strategy as to how it worked for others. The low TSP expense ratios are helpful. The financial journals are not sensitive to the TSP opportunities so little research available. Anyone found good references on this strategy as to pros and cons?

 

[reg]

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Currently studying this area you mention.. As of right now I am leaning to using the 401k as the primary retirement. 401k offers very low expenses and the G Fund has few peers. Also am evaluating moving any brokerage accouts to the 401k prior to retirement. Assume going back to an IRA is always an option after retirement.