Tsp withdrawals

ks-hillbilly

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Question about drawing out when you retire - how much do you draw out? Say you have 150k in it and retire at 60 - how much monthly is taken out? Does it eventually run out? Is it a percentage?
 

Voglio-il mio

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Question about drawing out when you retire - how much do you draw out? Say you have 150k in it and retire at 60 - how much monthly is taken out? Does it eventually run out? Is it a percentage?
There are several options, check tsp web site, Lite blue has videos and there are also videos on You-Tube given by financial advisors specifically for TSP!

I was going to explain, a few of them but decided not to, just do the research from the resources listed above!
 
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Altoonaflyer

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The tsp website has some calculators, but the new site doesn’t have them all working yet...generally speaking, common % withdrawal recommendations are about 4% of total value per year...this allows for some growth still. It all depends on your financial goals and how long you need the $$ to last. When the tsp payment and annuity calculator is updated you can go through multiple scenarios that will give you some concrete numbers.
 

psd181

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I would take it all out and pay the taxes. The dumocrats tried to take the 401k (tsp included)'s away in 2009 and if they could have kept the House in 2010 would have probably done it. The Senate was all in on it also. They were saying since the 2008 collapse 401k's weren't a very good way to have a retirement so they would take away every penny everyone had in them and then turn it into a "set" retirement allotment for everyone. So if you had $1 million you lost it and would get $2000 a month retirement. Your neighbor who never put money into a 401k's and spent $20k a year on tattoos and has no retirement would also get $2000 a month........... from the pool of money the Gov't stole from people's 401k's.
 

Altoonaflyer

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I would take it all out and pay the taxes. The dumocrats tried to take the 401k (tsp included)'s away in 2009 and if they could have kept the House in 2010 would have probably done it. The Senate was all in on it also. They were saying since the 2008 collapse 401k's weren't a very good way to have a retirement so they would take away every penny everyone had in them and then turn it into a "set" retirement allotment for everyone. So if you had $1 million you lost it and would get $2000 a month retirement. Your neighbor who never put money into a 401k's and spent $20k a year on tattoos and has no retirement would also get $2000 a month........... from the pool of money the Gov't stole from people's 401k's.
I don’t think either party would want to do that...us good ole boys who are still working 45-50 hrs a week might just decide to take a little time off to ”protest” 😎
 

hockey94

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If you have a portion of your TSP designated as a "Roth" you DO not pay taxes on the withdrawal, not sure if you have to be at least 59.5 when you take it out.
 

Voglio-il mio

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If you have a portion of your TSP designated as a "Roth" you DO not pay taxes on the withdrawal, not sure if you have to be at least 59.5 when you take it out.
I believe at 30 yrs and age 55 it can be withdrawn without penalty but you will have to pay taxes. If you have both a Traditional and Roth both they must be withdrawn equally you can not just take the Roth. Minimum withdrawal is $5000 and TSP only allows two withdrawals so you would have to take all the second time and roll it into an IRA or something if you want it to remain sheltered form taxes. Other options are to set up monthly distributions until balance is depleted or you can buy different types of annuities. This answer is not complete and is from memory so it may not be 100% accurate, this is why you should do your own research, the resources are out there. Its important for you to determine what is best for your situation, the options that may be best for me may not be for you!
 

psd181

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I don’t think either party would want to do that...us good ole boys who are still working 45-50 hrs a week might just decide to take a little time off to ”protest” 😎

Here's one article. I did a quick google so I'm sure other stories are still out there.............

 

Altoonaflyer

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Here's one article. I did a quick google so I'm sure other stories are still out there.............

I wasn’t doubting, thanks for the link. I was merely pointing out that politicians should be smart enough to draw the line somewhere...or they may find the line drawn for them. A man with nothing, has nothing to lose...let‘s hope my life long financial discipline isn’t used to fund someone’s beer, cigarette and Amazon habits😱
 

wfillbra

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Question about drawing out when you retire - how much do you draw out? Say you have 150k in it and retire at 60 - how much monthly is taken out? Does it eventually run out? Is it a percentage?
There is no forced withdrawal. Withdraw as you please. Leave in place and let the accounts you have the money in grow (or not depending on the account). Set up a fixed annuity. Your options are many. Go to tsp.gov and check it out.
 

uselesshasbeen

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There is no forced withdrawal. Withdraw as you please. Leave in place and let the accounts you have the money in grow (or not depending on the account). Set up a fixed annuity. Your options are many. Go to tsp.gov and check it out.
Believe that TSP is subject to withdrawal rules of retirement accounts. When, you get there is the only potential concern. When you get in the 70 year range you are forced to make withdrawals, which are an increasing percentage in hopes of you having to spend it all before you die at 120. Taxes!

Old enough to be penalty free I opted for monthly withdrawals (payments to me) that slightly exceed the famous 4% rule and before the recent decimation of the stock market I had maintained the original amount, meaning if it kept up I could live forever. Expect that to change as I age and am forced to take more, and eventually less. Choices should depend on individual need. Make an informed choice.

Pretty sure people worried about 401Ks and IRA's being confiscated are sinking their fortunes in to precious metals.
 

Voglio-il mio

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Believe that TSP is subject to withdrawal rules of retirement accounts. When, you get there is the only potential concern. When you get in the 70 year range you are forced to make withdrawals, which are an increasing percentage in hopes of you having to spend it all before you die at 120. Taxes!

Old enough to be penalty free I opted for monthly withdrawals (payments to me) that slightly exceed the famous 4% rule and before the recent decimation of the stock market I had maintained the original amount, meaning if it kept up I could live forever. Expect that to change as I age and am forced to take more, and eventually less. Choices should depend on individual need. Make an informed choice.

Pretty sure people worried about 401Ks and IRA's being confiscated are sinking their fortunes in to precious metals.
Last year the government changed RMD's (from age 70 1/2 to 72!

.
 

stillfirstclass

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Believe that TSP is subject to withdrawal rules of retirement accounts. When, you get there is the only potential concern. When you get in the 70 year range you are forced to make withdrawals, which are an increasing percentage in hopes of you having to spend it all before you die at 120. Taxes!

Old enough to be penalty free I opted for monthly withdrawals (payments to me) that slightly exceed the famous 4% rule and before the recent decimation of the stock market I had maintained the original amount, meaning if it kept up I could live forever. Expect that to change as I age and am forced to take more, and eventually less. Choices should depend on individual need. Make an informed choice.

Pretty sure people worried about 401Ks and IRA's being confiscated are sinking their fortunes in to precious metals.
from a dave ramsey article:
In 2011 and a few months later in 2012, the Treasury Department borrowed money from federal workers’ retirement funds as the nation’s leaders debated raising the nation’s legal debt limit. These were the fifth and sixth times in 20 years the Treasury Department borrowed from federal workers’ retirement money. congress doesn't bring this up much, hoping we forgot:(
 

wfillbra

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Believe that TSP is subject to withdrawal rules of retirement accounts. When, you get there is the only potential concern. When you get in the 70 year range you are forced to make withdrawals, which are an increasing percentage in hopes of you having to spend it all before you die at 120. Taxes!

Old enough to be penalty free I opted for monthly withdrawals (payments to me) that slightly exceed the famous 4% rule and before the recent decimation of the stock market I had maintained the original amount, meaning if it kept up I could live forever. Expect that to change as I age and am forced to take more, and eventually less. Choices should depend on individual need. Make an informed choice.

Pretty sure people worried about 401Ks and IRA's being confiscated are sinking their fortunes in to precious metals.
I did not mean to indicate that there are no forced withdrawal rules. The government rules are the same whether you are in a private sector or public sector retirement account. I was just trying to point out that TSP is not a bad choice for retirement money.
 
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