By Mike Miles
January 24th, 2012 | Uncategorized
Q. Can I roll my Thrift Savings Plan over to an Individual Retirement Account when I retire? I have at least four more years to go. I will be 57 with 30 years in. I am under the Federal Employees Retirement System.
I can’t believe I can’t touch my money unless I am 59.5. Why is it taking so long to get our retirement annuity? I will retire as a GS-6 Step 9.
A. Yes, you may roll your TSP money into an IRA after you retire.
January 28th, 2012 at 10:58 am
My comment to the above about rolling your TSP savings into an IRA, is that yes you can do it, but if you are under CSRS, you don’t need to wait until you are 59 1/2 to withdraw from TSP without penalty. You can withdraw as soon as you retire. Not sure if it is the same for FERS.
February 16th, 2012 at 12:24 pm
When I went to a pre-retirement planning seminar for fers retirement – it is my understanding that with 30 years and MRA – you can take out TSP without a penalty at you MRA. In a publication by GRBinc. (Govt Retirement Benefits, inc) ed 2011-04 on page 201 – taxation penalty for early withdrawal – states the penalty is not imposed if the employee is under age 59 1/2 and meets one of the following exceptions
- disability retirement
- separation from service occurs during or after the year the indicidual reaches age 55
- payments are based on life expectancy (e.g., TSP annuity payments)
I plan on retiring at 56 with 31 years and was told that there is no penalty for tsp withdrawals because I have 30 years and MRA