TSP when getting out - questions.

c0ncernedwife

PEB Forum Regular Member
Registered Member
Husband was medboarded two years ago and found FIT because he only had two years left on his contract at a shore duty station.

He starts terminal leave in two weeks and gets out with an EAOS of 6 October 2020.

He was recently selected/picked up for reserves and was curious if he can still take out what’s in his TSP. It will not be for a transfer, but just to put in savings as his new company has an impeccable program for him going forward.

Is he still able to just take it out and stop his TSP since he’s doing reserves? We’ve called TSP and continue to get hung up on the past few days as I’m sure their call centers are overloaded during this time. Thanks.
 
Short answer is Yes.

However, If you are talking about liquidating it, then you would be subject to an IRS 10% penalty, plus all normal taxes on the amount you withdraw.

But if you just transfer it to another financial institution then you will avoid those fees.
 
Short answer is Yes.

However, If you are talking about liquidating it, then you would be subject to an IRS 10% penalty, plus all normal taxes on the amount you withdraw.

But if you just transfer it to another financial institution then you will avoid those fees.

thank you :)
 
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