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TSP Withdrawal Options

TSP Withdrawal Options

| October 25, 2016
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TSP

For military and Civil Service personnel,

Here are salient bullet points on TSP Withdrawal Options:

  • Partial Withdrawal--use TSP-77 form

         – One-Time Only Amounts >$1000

  • Full Withdrawal--use TSP-70 Form

        – Single Payment (can be rolled over into IRA within 60 days of receiving check)

        – Series of monthly payments (based on life expectancy)

        – Specific monthly amount (until account runs out)

        – A Life Annuity

        – Mixed Withdrawal (a combination of the Full Withdrawal Options)

  • Rolling over your withdrawal

       – Direct Trustee to Trustee transfer from IRA to 401(k). Not susceptible to tax withholding (Federal & State)

       – Amounts that are not transferred will be paid to you by check, or to your checking/savings.  Subject to Federal tax withholding on any taxable  amounts.             Consult with your tax adviser/CPA.

      – Certain payments that are eligible to be transferred, but are paid directly to you, can still be “rolled over” to an IRA or an eligible employer plan within 60            days of the date you receive the funds from the TSP.

Note: Consult with your Financial and Tax Advisers to ensure you elect the option that best suits your retirement income needs.  

Source: Withdrawing Your TSP Account After Leaving Federal Service Brochure, 2014

Securities offered through Securities America, Inc. Member FINRA/SIPC.  Advisory Services offered through Securities America Advisors, Inc. An SEC Registered Investment Advisor. Rodriguez Financial Strategies LLC and the Securities America companies are unaffiliated.  Securities America and its representatives do not offer tax or legal advise.  Investors should consult their tax advisor or legal counsel for advise and information concerning their particular situation prior to undertaking an investment plan.

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