To request a withdrawal, log into My Account and click on the “Withdrawals and Changes to Installment Payments” link on the menu. From there you’ll have access to an online tool with which to start your withdrawal.

When can I withdraw TSP?

age 59½ or older
Age-based in-service withdrawals are withdrawals that you can make from your TSP account when you’re age 59½ or older. We determine your age based on the date of birth reported by your employing agency or service. If that date is incorrect, you must ask your agency or service to change it.

What is the penalty for withdrawing from Thrift Savings Plan?

You have the option of increasing or waiving this withholding. The taxable portion of your withdrawal is subject to federal income tax at your ordinary rate. Also, you may have to pay state income tax. An additional IRS early withdrawal penalty of 10% may apply if you’re under the age of 59½.

How much tax do I pay on TSP withdrawal?

20%
The TSP is required to withhold 20% of your payment for federal income taxes. This means that in order to roll over your entire payment, you must use other funds to make up for the 20% withheld. If you do not roll over the entire amount of your payment, the portion not rolled over will be taxed.

Does my wife get my TSP when I die?

A beneficiary who is not a surviving spouse cannot retain a TSP account. The death benefit payment will be made directly to the beneficiary or to an “inherited” IRA. If a beneficiary participant dies, the new beneficiary(ies) cannot continue to maintain the account in the TSP.

What happens when I withdraw money from my Thrift Savings Plan?

If you get divorced, you can use money from your TSP to settle the divorce agreement. All these early withdrawals avoid the penalty, but still get charged income tax. If you withdraw money from your TSP for any other reason, it will get hit by the early withdrawal penalty. This adds an extra 10 percent charge on your entire withdrawal.

What’s the best way to withdraw money from my TSP?

You have three options to withdraw money from your TSP once you are at retirement age: single withdrawals, installment payments, and purchasing an annuity. You can choose to use one or all three of these methods. I’ve included a summary of the differences below; for further information, check out TSP Book #2.

How much can I borrow from my Thrift Savings Plan?

You are allowed to borrow from your TSP with an account loan. The IRS doesn’t charges taxes or a penalty on TSP loans. You can borrow up to $50,000 from your TSP.

What can I do with my Thrift Savings Plan after divorce?

If you get divorced, you can use money from your TSP to settle the divorce agreement. All these early withdrawals avoid the penalty, but still get charged income tax.