If you are 591/2 or older, you can make withdrawals from your TSP account while you are still employed. This is called an “age-based withdrawal” or “591/2 withdrawal.” You must pay income tax on the taxable portion of your withdrawal unless you transfer or roll it over to an IRA or other eligible employer plan.
What happens if I withdraw from my TSP?
Your TSP withdrawal may be subject to federal income taxes. Earnings on tax-exempt money in your traditional balance will be subject to tax at the time that you make a withdrawal. The earnings on tax-exempt money in your Roth balance will not be taxed if they are qualified.
Does TSP have mandatory withdrawal?
The Internal Revenue Code (IRC) requires that you begin receiving distributions from your account in the calendar year you become age 72 and are separated from federal service. Your entire TSP account—both traditional and Roth—is subject to these required minimum distributions (RMDs).
What age can I withdraw from TSP without penalty?
age 59½ or older
Age-based in-service withdrawals are withdrawals that you can make from your TSP account when you’re age 59½ or older. We determine your age based on the date of birth reported by your employing agency or service. If that date is incorrect, you must ask your agency or service to change it.
Does TSP withdrawal affect Social Security?
TSP withdrawals are not counted as income for purposes of the earnings test after you retire and are eligible for Social Security benefits.
How do I cash out my TSP?
To request a withdrawal, log into My Account and click on the “Withdrawals and Changes to Installment Payments” link on the menu. From there you’ll have access to an online tool with which to start your withdrawal.
Where can I withdraw money from my TSP account?
TSP Service Office National Finance Center P.O. Box 61500 New Orleans, LA 70161-1500. The TSP Service Office can answer questions about your account and can send you TSP withdrawal mate- rials to supplement the Withdrawal Package provided to you by your agency or service when you separated.
How old do you have to be to take money out of TSP?
You can withdrawal money from the TSP after you’re 59.5 years old even if you still work for the government. You do not need to claim any hardship to withdraw this money. However, you will need to pay a 20% tax on the withdrawal. You are able to make up to 4 withdrawals per year and the minimum withdrawal is $1,000.
How can I withdraw money from my Thrift Savings Plan?
For detailed information on your withdrawal options, specific tax consequences, withdrawal change requests, and special withdrawal considerations, visit Before you withdraw or read the TSP booklet, Withdrawing Your TSP Account for Separated and Beneficiary Participants.
What happens to my TSP balance when I separate?
When you separate, you can leave your entire account balance in the TSP if it is $200 or more. Your account will continue to accrue earnings and you can continue to change the way your money is invested in the five TSP investment funds by making interfund transfers. You can make an interfund transfer at any time.
