By Mike Miles
October 28th, 2010 | Uncategorized
Q: Let’s see if I’ve got this right. If I request monthly withdrawals from my Thrift Savings Plan account and change the amount each year, I’ll be able to receive a monthly check for life and still be able to build my principal, which I can pass on to my children or grandchildren. Does TSP have such a plan as this? What option is it and how does it work? If I need some emergency money, would I be able to make a withdrawal from my principal?
A: You may request a full withdrawal as fixed monthly payments. You set the amount and you may change the amount each year. Once you begin the full withdrawal in this way, any subsequent lump-sum withdrawal must be the final withdrawal of any remaining balance.