Author Topic: U.S. Feds New TSP Withdrawal Options - Effective Since 9/15/19  (Read 1066 times)

simonsez

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U.S. Feds New TSP Withdrawal Options - Effective Since 9/15/19
« on: September 26, 2019, 04:26:21 PM »
I know this has been in the works for awhile but now that the options are usable and have been for 11 days, I wanted to post the recent TSP vid that breaks it down pretty effectively in two minutes.

https://www.youtube.com/watch?v=oQh9HgrwkDI

Much more flexibility!

six-car-habit

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Re: U.S. Feds New TSP Withdrawal Options - Effective Since 9/15/19
« Reply #1 on: September 26, 2019, 11:47:17 PM »
 Yes , the options they opened up, amount of withdrawals per year, # of changes a person can make to the set withdrawal amounts each period, are way better than before. Also the taking of "irregular" lump sum amounts is way more liberal than it used to be.  The ability to choose between taking from traditional vs Roth accounts is another new feature [ vs. old method of proportional withdrawals]

  It has me thinking of taking a lump sum withdrawal upon retirement to pay off mortgage, whereas a year ago, that option seemd to carry fairly restricitve caveats tied to it -  [ie: it may have allowed only a one time, non repetative, "large" withdrawal,  if i understood the Old rules correctly ] .

nancyjnelson

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Re: U.S. Feds New TSP Withdrawal Options - Effective Since 9/15/19
« Reply #2 on: September 29, 2019, 11:22:35 AM »
Thanks - this was so helpful!

I took a "one-time-withdrawl" after retirement but prior to turning 59 (I still have a couple of years left to go) after I retired from federal service six years ago.  I used it to pay off the mortgage - the peace of mind I received was priceless even though it prevented me from utilizing my TSP to do other things.  It's good to have more flexibility should I need it.