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Thread: FER's Retiree: When to withdraw from TSP, start Social Security

  1. #13

    Join Date
    Jul 2016
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    Texas
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    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    Quote Originally Posted by weatherweenie View Post
    If you are withdrawing from your TSP, are you having to pay a penalty/fee/extra tax, or did you handle this through a 72t?

    Also, you said that you initially were withdrawing $800, then changed to $400/month. I thought, especially with early retirement, once you commit to withdraw an amount, you were not able to change, increase/decrease the amount of the withdrawal?
    At age 59.5, you have the flexibility of selecting the amount. Under 72T, life expectancy calculation, your amount will change each year based on the end of year balance and age factor--both change. There are alternate methods but with low interest rates, my understanding that there really isn't that much difference with the other Substantially Equal Periodic Payments (SEPP) methods. If you begin 72T payments, you have to keep doing it for 5 year or until 59.5, whichever is longer. see Rule 72(t) Definition | Investopedia & https://www.irs.gov/retirement-plans...iodic-payments

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  3. #14

    Join Date
    Jun 2006
    Location
    Wilmington,NC
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    821

    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    I just got confirmation that my tsp full withdrawal was complete and transferred to an IRA, under the advisement of my financial advisor. He is very sharp and has some other options for me as well including a life insurance policy that will bring me 7% and have a cash value. I trust him completely so now I will not have to worry about the market swings. It's literally all in his hands. I'm 57 now and retired 2 years ago and I don't anticipate needing the money but he says I will be making money that I can withdraw for vacation trips. Time will tell. It really feels good to have a professional who knows what he is doing to give me peace of mind. Time will tell, since as I speak I'm working on getting life insurance and once I do I will cancel my federal life insurance. And ohhhh the new insurance with 7% minimum gain/yr and cash value will cost me basically the same as I'm paying for fed life insurance, no brainer to me.

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  5. #15

    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    Good luck GUCHI. I'm not a big fan of whole life insurance policies, but if it put you in a comfortable place, I guess that's all that matters.

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  7. #16

    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    Quote Originally Posted by weatherweenie View Post
    If you are withdrawing from your TSP, are you having to pay a penalty/fee/extra tax, or did you handle this through a 72t?

    Also, you said that you initially were withdrawing $800, then changed to $400/month. I thought, especially with early retirement, once you commit to withdraw an amount, you were not able to change, increase/decrease the amount of the withdrawal?

    weatherweenie----you can change how much money you get a month with TSP form 73. You can do this each year between October 1st to December 26th. The change will take place the following year. The minimum dollar amount you can take out is $25 a month.

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  9. #17

    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    Quote Originally Posted by weatherweenie View Post
    If you are withdrawing from your TSP, are you having to pay a penalty/fee/extra tax, or did you handle this through a 72t?

    Also, you said that you initially were withdrawing $800, then changed to $400/month. I thought, especially with early retirement, once you commit to withdraw an amount, you were not able to change, increase/decrease the amount of the withdrawal?
    If you are under 59.5 years old and change your 72t monthly payment it will trigger penalties for all the years you used that rule. After 59.5 you can do the yearly change without penalty.
    100 S
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  11. #18

    Join Date
    Jun 2006
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    Wilmington,NC
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    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    I took the 72t route, with advisement from adviser.


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  13. Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    Are you able to write a check to the TSP to cover your years age 50 catch up contribution if you retire mid year? or is it just payroll deductible only?

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  15. #20

    Join Date
    Dec 2007
    Location
    inland Northwest
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    Default Re: FER's Retiree: When to withdraw from TSP, start Social Security

    sorry to be bearer of bad news, vegas. payroll deductions only.

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