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.

How much will I be taxed if I withdraw my TSP?

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.

Can you withdraw from TSP without penalty?

If you would like to make a withdrawal from your TSP, but you do not want to pay the applicable taxes, you have the option to repay the funds as if they were a loan. “There will be no income tax penalty if you repay within that timeframe. If you do not repay, there could be a substantial penalty.”

How long does it take to get money from TSP hardship withdrawal?

The TSP says you should allow up to 10 days from the time you submit your withdrawal request until payment is sent. You will be notified when your payment has been disbursed.

What happens to my TSP money if I die?

If you die with a TSP loan or loans out- standing, death benefit payments from your ac- count cannot be distributed until the outstanding amount has been declared a taxable distribution. The loan will be declared as taxable income to your estate, not to your beneficiaries.

How old do you have to be to withdraw from TSP?

Current federal civilian employees and members of the uniformed services who are age 59½ or older are able to request a withdrawal of all or a part of their vested TSP account balance. Changes to Age-Based In-Service Withdrawals The FRTIB has made the following changes related to age-based in-service withdrawals:

How old do you have to be to withdraw from Thrift Savings Plan?

Requirements for an Age-Based In-Service Withdrawal. Current federal civilian employees and members of the uniformed services who are age 59½ or older are able to request a withdrawal of all or a part of their vested TSP account balance.

Who is a beneficiary of a TSP account?

A “beneficiary participant” is a spouse beneficiary of a deceased civilian or uniformed services TSP participant who has a TSP account established in his or her name. In this booklet, you will find information about the withdrawal process, the rules that govern withdrawals, and the tax implications of each withdrawal option.

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.