Hello all. I am brand new to this board so thank you for having me. I have been retired CSRS for 8 years and have never touched my TSP. I feel as though the fund as a whole has limited withdrawal options. Lump sum and/or down the road monthly partials. Say I wish to take out 20K. tomorrow. Well, i cannot take 15K next year or even next month. Has anyone found a vehicle like the TSP with a more consumer/customer friendly withdrawal scenario. Thanks in advance.
I’m just a few years from my retirement, and I’ve just researching my withdrawal options. I agree that withdrawal options aren’t especially flexible.
If you are worried about flexibility, then you take a withdrawal, and directly transfer to an IRA. Then you can avoid paying taxes. Once the money is in the IRA, you would be free to withdrawal the money anyway you like.
All that said, once you hit 70 1/2 you will be required to take the Required Minimum distribution, regardless of what account the money is in.
There are tax implications with any withdrawal from retirement accounts, so it can be helpful to talk over your situation with a tax expert.