By Mike Miles
Withdrawing funds
July 22nd, 2011 | Uncategorized
Q: I stopped work in March of 2009. I applied for OWCP. OWCP had paid for two back surgeries in 1989 and 1991 as well as continues to pay for ongoing treatment. I was denied OWCP so I applied for disability retirement which was approved. I am still on interim retirement pay. I withdraw some funds from my TSP to cover me for the time period between OWCP and retirement. I now need to withdraw more for medical reasons. Since I am medically disabled from my federal position as well as medically retired, what is the best way to withdraw my FERS TSP moneys?
A: You may take a full withdrawal as a lump sum, as monthly payments either based on your life expectancy or as fixed payments which you may adjust once each year, or as a life annuity. There is not universally “best” way to withdraw the money. You’ll need to decide which way is best for you.