By Mike Miles
November 27th, 2009 | Uncategorized
Q: I have recently taken Voluntary Early Retirement from the Postal Service as of Oct. 31, 2009. I want to withdraw money from my Thrift Savings Plan account under the 72(t) section, but am having difficulty filling out the TSP 70 form correctly. I want to do it right the first time so that my case is handled properly and I do not have to encounter any complications later on. Can you guide me on how to fill out this form correctly? I turn 55 on Dec. 2, I am married, and my TSP balance is approximately $400,000.
A: The form includes very specific instructions for completing each section, so I’m not going to reprint them here. You’ll need to decide which 72(t) withdrawal option you’re going to use and then fill in item 23 of the form accordingly. If you’re not sure how to calculate the various 72(t) options, I suggest that you engage a certified public accountant to help you.
John Tegtmeier Says:
November 30th, 2009 at 8:22 am
Because the individual will turn 55 in the year of retirement, there is no reason to withdraw from the TSP using the 72(t) option. It complicates matters for no reason – there will be no penalties for early withdrawal in any case.