Withdrawing from TSP and setting up monthly payments

[secrt007agt]

I would like to take some cash out of my TSP upon retirement (this week) and then draw equal monthly payments with remaining balance, and yes I am 57 so I will not pay a penalty for withdrawing.

Question 1. Do I have to wait to complete or submit my request to take the cash draw out?

Question 2. Do I complete the TSP 70 or TSP 77 or both.

 

[Show-me]

I would like to take some cash out of my TSP upon retirement (this week) and then draw equal monthly payments with remaining balance, and yes I am 57 so I will not pay a penalty for withdrawing.

Question 1. Do I have to wait to complete or submit my request to take the cash draw out?

Question 2. Do I complete the TSP 70 or TSP 77 or both.

secrt007agt,

First, welcome to the MB. Second, I'm not trying to blow you off and I do not know the answer to the question. You need to call TSP about that as a wrong answer from one of us could really mess things up.

1-TSP-YOU-FRST (1-877-968-3778)

 

[secrt007agt]

Hey thanks for really cool video. I was going to call, but I thought maybe one the folks here on the site may have been down that road. Just let me know if you need my services, I may could be talked out of retirement on a case by case basis. lol

 

[Scout333]

Hello Secrt, Saw this on MSN this morning and thought of your question. This is three money-saving ideas that sound good but may not be.

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/3MoneyStrategiesThatCanBackfire.aspx

 

[readytoretire]

I just stumbled upon this question; and have had some conflicting information this past week. I too, plan to retire soon, at age 58, with 23 yrs at gov; i planned to defer my fers [to not loose the age amt], and begin taking my tsp in monthly payments. I also, felt that I would not pay a penalty, [over 55 and getting in monthly amts].......now someone tells me that I have to wait until 59 and 1/2...like regular 401K's..........help please. Thanks

 

[XL-entLady]

I just stumbled upon this question; and have had some conflicting information this past week. I too, plan to retire soon, at age 58, with 23 yrs at gov; i planned to defer my fers [to not loose the age amt], and begin taking my tsp in monthly payments. I also, felt that I would not pay a penalty, [over 55 and getting in monthly amts].......now someone tells me that I have to wait until 59 and 1/2...like regular 401K's..........help please. Thanks

The 59 1/2 rule applies UNLESS .... several things. The actual information direct from the TSP site is:

"If you receive a TSP distribution before you reach age 59½, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10% of any portion of the distribution not transferred or rolled over. The additional 10% tax generally does not apply to payments that are:
• Paid after you separate from service during or
after the year you reach age 55;
• Made because you are totally and permanently​

disabled;*

• Paid as substantially equal payments over your
life expectancy;

• Annuity payments;

• Ordered by a domestic relations court;
• Made because of death; or
• Made in a year you have deductible medical expenses​

that exceed 7.5% of your adjusted gross income.*" [emphasis added]​

http://tsp.gov/forms/octax92-32.pdf​

Hope that helps!
Lady​

 

[readytoretire]

It says "generally"......who will interpret that???? and what might that mean?? please

 

[ATCJeff]

Do not forget about IRS rule 62T.

 

[XL-entLady]

It says "generally"......who will interpret that???? and what might that mean?? please

The IRS interprets it. The "generally" is just weasel-wording. There are some specific out-of-the ordinary cases where the list wouldn't apply. And that is because of our strange tax code. But the information is accurate for the vast majority of people.

Lady

 

[Guest2]

Don't forget that Law Enforcement rules are different concerning the
Taxation of your TSP being that we can retire after 20 years. Monthly
payments "might" be different then a normal Federal Retiree. The memory
is shot, otherwise I'd give you more. Maybe someone else can share.

 

[Spaf]

Retirement

Just about every one of us has a different retirement situation.
Here are some things that may help. The major thing is to plan ahead.
1. a. Go to the TSP government web site and download the publications about retirement. ---> http://www.tsp.gov/index.html
1. b. Go to the TSP government web site and play with their retirement calculators and understand your various options.
2. The publications will tell you what forms are applicable.
3. Seek financial help from a certified accountant in setting up your plan for retirement.
4. Contact your personel office to give you computer print-outs on the various retirement scenarios i.e., age, earnings, withholdings, deductions, etc.
5. make yourself an estimated retirement financial picture, such as on a spreadsheet.
6. Make critical allowances for health, insurance, dependants, etc.
7. Establish an Emergency Fund (min. 10K) cash account. To cover medical caps, expenses, and any unusual emergency.

 

[clester]

Check out www.72t.net