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Thread: Can I withdraw my tsp money if I'm getting out of the military?

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    Default Can I withdraw my tsp money if I'm getting out of the military?

    I'm getting out soon and I want to withdraw my money. Will I get a penalty? I'm not going to work after the military right away. I plan to go to college so there's no point to leave my money in there if I'm not getting a job to transfer to 401k. Is it possible?


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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    Quote Originally Posted by airforceguy429 View Post
    I'm getting out soon and I want to withdraw my money. Will I get a penalty? I'm not going to work after the military right away. I plan to go to college so there's no point to leave my money in there if I'm not getting a job to transfer to 401k. Is it possible?
    If you are not 59 1/2 you receive a early withdrawal penalty and you have to pay income tax on the amount removed.

    You can roll it into a traditional IRA with a bank or brokerage account.
    Socrates: "Democracy, which is a charming form of government, full of variety and disorder, and dispensing a sort of equality to equals and unequaled alike."

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    Hey airforceguy429,

    please dont ake your money out of your tsp. See if you can roll it over to an ROTH ira or just roll it over to another account. You will pay double if you withdraw and the year are going to go by so fast. plan for your retirement now! dont withdraw your money!!!

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    How difficult is the TSP to Roth conversion? Anyone who has completed the transaction able to discuss? My TSP has some contributions made while in a combat zone, so I understand that contribution would be a tax free conversion, while the rest of the conversion would be taxable.

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    You may need to make a call to tsp.gov on that one. I thought that once they are in the tsp account you can not get them back out without pay the appropriate tax.
    Socrates: "Democracy, which is a charming form of government, full of variety and disorder, and dispensing a sort of equality to equals and unequaled alike."

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    Thanks- will review the TSP.gov site and consider making the conversion (just retired from the Army). I'll likely wait until after 1 Jan to make this a taxable event for next year when my gross income will be significantly less (unfortunately).

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    Call them, it should be easier that navigating the site. You have a unique question that should be answer by a person.
    Socrates: "Democracy, which is a charming form of government, full of variety and disorder, and dispensing a sort of equality to equals and unequaled alike."

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    http://www.tsp.gov/forms/tspbk02.pdf

    Link to TSP withdrawal options after leaving military.

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    Used the TSP.gov toll-free number. Person recommended that I talk with a tax advisor regarding the tax-free portion of my conversion. I'll also have to check our IRS's website.


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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    if you do not need the money, do not withdraw your money from the tsp. leave it there and let it grow. you don't have to transfer it to an ira or a 401k. you can always decide do that at a later date. your tsp will come in handy during your golden years, which is only golden, if you have your health and money.

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    Off subject a little. How does TSP show the difference between pre-tax and tax free contributions? Does this show on your quarterly/annual satements?

    Just being nosy.

    PO

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    Default Re: Can I withdraw my tsp money if I'm getting out of the military?

    It doesn't; once it's in there it's in there.

    Quote Originally Posted by PessOptimist View Post
    Off subject a little. How does TSP show the difference between pre-tax and tax free contributions? Does this show on your quarterly/annual satements?

    Just being nosy.

    PO

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