Withdrawing from Your TSP

I have 31k in my TSP. Is it possible to withdraw the total amount at one time? Here's what you need to know.
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[@erickarnell]

If I don't do anything with traditional TSP until I am 73 or later, it's going to be huge and I'm going to have a tremendous tax bill.

[@keithr5638]

When I retire, do I need to notify TSP or does OPM do that?

[@Royale_with_Cheeze]

This is 11 months since you posted the question, but nobody replied so... I retired from USPS coming up on 2 years. OPM notifies TSP not long after the retirement process is complete. From then, you have no more contributions into the TSP, although you can still shift around where the funds are going (C,G,F,S funds), as they are still investments. If you want to keep it safe, have it all in G. If you want to play the market, put some of it in the growth funds. Hope this helped.

[@keithr5638]

Thanks @@Royale_with_Cheeze .

[@Royale_with_Cheeze]

@@keithr5638 How close are you to retiring? If you're going to get an OPM annuity, be sure to put the paperwork in for the END of any given month. You become an OPM entity on the first day of the month after you retire. I retired April 30, got my first OPM payment on June 1 and every month since. It's always a month in arrears.

[@brucetennyson5035]

If you take regular installment payments in retirement and those payments will last longer than 10 years then you can choose no tax withholding. You still have to pay taxes on that money…but that is an option

[@kckuc310]

What if you have traditional and Roth? Two separate checks?

[@planyourfederalretirement]

If you take a distribution from the TSP, you can specify if you want the distribution to come from either Traditional or Roth, or pro rata.

[@mohammadalhallak4295]

Thanks 🙏 for the info, If I choose the lump sum when I retire, do I get %100 or TSP will hold a portion of my money for tax purposes?

[@alrocky]

If you select a lump sum check payable to you, TSP will withhold 20% for federal tax. Consider moving some or all of your TSP to traditional IRA and withdraw from that t-IRA.

[@mohammadalhallak4295]

@@alrocky thanks 🙏

[@ikneadu]

Does it work the same for Civil Service?

[@brucetennyson5035]

@@imback7937that’s not true. I’m retired from the Post Office under civil service and everyone I know has a TSP account. The only difference is that civil service employees didn’t get any matching funds like FERS employees