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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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DGP  
#1 Posted : Tuesday, November 5, 2019 10:34:30 AM(UTC)
DGP

Rank: Newbie

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Joined: 11/4/2019(UTC)
Posts: 3
Location: Europe

Hello Ed Z,

My wife and I enjoyed you class in Italy. Thank you!!!

My question is about drawing out TSP at age 56 with no 10% penalty and defering my federal retirement until 62. We want to draw on the TSP at 56. Doing this allows us an early retirement.

We are planning to make some significant plans based on this information.

Can you please direct me to the specific referance for this rule?

Again, THANK YOU,
David
TheRealOrange  
#2 Posted : Tuesday, November 5, 2019 10:46:39 AM(UTC)
TheRealOrange

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Originally Posted by: DGP Go to Quoted Post
Hello Ed Z,

My wife and I enjoyed you class in Italy. Thank you!!!

My question is about drawing out TSP at age 56 with no 10% penalty and defering my federal retirement until 62. We want to draw on the TSP at 56. Doing this allows us an early retirement.

We are planning to make some significant plans based on this information.

Can you please direct me to the specific referance for this rule?

Again, THANK YOU,
David

Ed does not reply in this forum. If you want an answer directly from him, you should post in "Federal Employees Benefits Q&A" forum.

https://forum.federalsou...lt.aspx?g=topics&f=6

Here is information directly from the TSP website:

Early Retirement

If you receive a TSP withdrawal payment 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 taxable portion of the payment that is not transferred or rolled over. However, if you separate from service during or after the year you reach age 55 (or the year you reach age 50 if you are a public safety employee as defined by section 72(t)(10)(B)(ii) of the Internal Revenue Code), then the 10% early withdrawal penalty tax does not apply.

https://www.tsp.gov/Life.../enteringRetirement.html
DGP  
#3 Posted : Wednesday, November 6, 2019 11:17:26 AM(UTC)
DGP

Rank: Newbie

Groups: Registered
Joined: 11/4/2019(UTC)
Posts: 3
Location: Europe

Hello The Real Orange,

THANK YOU! For you help. This is a huge weight off our mind.

We have a lot in our TSP and plan to postpone our FERS from age 56 until 62.

Again, thank you!
David
TheRealOrange  
#4 Posted : Wednesday, November 6, 2019 11:28:16 AM(UTC)
TheRealOrange

Rank: Senior Member

Groups: Registered
Joined: 5/22/2011(UTC)
Posts: 709

Thanks: 1 times
Was thanked: 137 time(s) in 119 post(s)
Originally Posted by: DGP Go to Quoted Post
Hello The Real Orange,

THANK YOU! For you help. This is a huge weight off our mind.

We have a lot in our TSP and plan to postpone our FERS from age 56 until 62.

Again, thank you!
David

Out of curiosity, how many years of creditable service will you have at age 56, which I assume is your Minimum Retirement Age? If it is less than 20 years, then I can understand postponing the annuity until age 62. If it is at least 20 years, then there would be no reason to postpone receipt of the annuity until age 62, as you could start the annuity at age 60. Again, just curious. :-)
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