What age can I start withdrawing from my TSP?
What age can I start withdrawing from my TSP?
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.
When can I access my TSP without penalty?
55
Basically, if you leave service before the year you turn 55 then you will have to wait until age 59 and ½ to avoid the 10% penalty (unless you qualify for a different exception). Note: Your traditional TSP withdrawals will still be subject to taxes even if you avoid the 10% penalty.
Can I withdraw my TSP at age 57?
Since the TSP is a retirement plan, there is no penalty for withdrawing your money during retirement. If you stop working for the federal government, you can start making retirement withdrawals when you turn 55. If you keep working for the federal government, you need to wait until you turn 59-1/2.
How much will I be taxed if I withdraw my TSP?
We’ll withhold 10% on the taxable portion of your withdrawal for federal income tax. You have the option of increasing or waiving this withholding. The taxable portion of your withdrawal is subject to federal income tax at your ordinary rate.
Does TSP withdrawal count as income?
The taxable portion of your withdrawal is subject to federal income tax at your ordinary rate. Also, you may have to pay state income tax. An additional IRS early withdrawal penalty of 10% may apply if you’re under the age of 59½.
Is FERS pension taxable?
Federal employees sometimes forget that their federal retirement pension *is* taxable. Your CSRS or FERS Pension will be taxed at ordinary income tax rates. Now – you will get your contributions back tax-free (since you already paid taxes on the money when it was taken out of your pay check).
What is the retirement age for FERS?
FERS employees can retire at their minimum retirement age (MRA) (age 55 to 57 depending on which year they were born) with a minimum of 30 years of federal service. They could retire at age 60 with a minimum 20-years of federal service. In either case, a retired FERS employee will immediately start receiving their FERS annuity.
Should FERS annuitant withdraw TSP or social security first?
If there is no need to start withdrawing TSP or receiving Social Security benefits, it makes sense to delay the withdrawal of each. When choosing which to begin first, one factor is whether the FERS annuitant is working post-federal retirement and doing more than “token” work for pay.
What are the rules for the early withdrawal penalty for the TSP?
The rules for the early withdrawal penalty for the TSP are different from the rules for IRAs. With the TSP, you are exempt from the early withdrawal penalty if you separate from federal service in the year in which you reach age 55 or later.
What are the requirements for an age-based in-service withdrawal?
Requirements for an Age-Based In-Service Withdrawal. Current federal civilian employees and members of the uniformed services who are age 59½ or older are able to request a withdrawal of all or a part of their vested TSP account balance.
