Partial TSP rollover to an IRA at retirement?

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I am planning to retire this year at age 60. How would I go about taking a full withdraw in order to rollover money into an IRA and use some cash to pay down a loan? (No in-service withdrawals were made).

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Asked on June 13, 2017 9:19 pm
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You would use the form TSP-70, Request for Full Withdrawal. A fillable version of this form is available on the TSP website. You would choose to have 100% of your account as a single payment.
You then fill in the parts of the form about transferring a percentage of this single payment to an IRA or other tax deferred account and send the form to the custodian of the IRA so that they can complete information about your new IRA.
Don’t forget to get your spouse’s signature (it’ll have to be notarized if you’re FERS).
You’ll also have to list your direct deposit information for the portion of your TSP that will be sent to you so that you can use it to pay off that loan. There is 20% mandatory withholding for federal income tax and, if you feel you want more withheld, there’s a place on the form where you can make that request.
Like most federal forms, there’s as many pages of instructions as there are areas to be completed make sure you read them all. Then review the form carefully to be sure everything reflects your wishes as to the withdrawal. Once the TSP processes a form, it can’t be changed.

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Posted by (Questions: 0, Answers: 61)
Answered on June 14, 2017 9:56 am