Been a regular reader on this forum for a long time. Looking for some good advice. Recently retired, VERA from USPS on oct.31st. Will turn 55 on Dec 3.
Want to make monthly withdrawal from TSP under 72(t)rule.Attempted to consult
with TSP personnel with very limited success. Having a very hard time completing Section 3 and 4 of TSP70. Any advice will be greatly appreciated!!

/m1569
Being that you are 55 the same calender year you retire, you are entitled to take what ever monthly payment you want without 10% penalty and you need not apply the SEPP type rule.
 Item 4 on the TSP70 only applies if you want to transfer the money out of TSP to another custodian company. I think you just want monthly payments from TSP so item 3-17C would be your input. (the other "transfer" stuff does not apply if you keep your balance at TSP and get monthly payments from them.....
Please comfirm this info with TSP 1-877-968-3778 and get through the automated system to talk to humans.

I opted to make a full withdrawal of my TSP. I had a decent chunk of change in it but over the years I invested elsewhere. I also had an outstanding loan which I declared as taxble income. Finally got my letter telling me that. I plan to use that money to complete my home makeover. Can't wait.

Thanks Konoctiguy for your help to my confused status. I should have mentioned line #s on form TSP70 instead of sections for better clarification.
Would you please advice me what I should put on lines 18 thru line 23. I just want to make certain that the
TSP office know that I am requesting 72(t) and not something else. I wish
to get this right the first time and avoid complication later on. Thanks again KONOCTIGUY . THIS MEANS A LOT TO ME!

/m1572

This article is really good on your options as an overview. I hope you will read this before acting. http://www.govexec.com/dailyfed/0306/032406rp.htm

/m1572
Lines 18 thru 22 deal with your spouse right in determining your choice of using THE WHOLE BALANCE for either a life annuity or keeping some of the balance in TSP and getting a monthly payout (you chose how the pie gets split in lines 50-51). For many spouses (if they don't know much about investing) it is a safe play to get an annuity so when the stress of losing you hits, they don't need to ever worry about managing the account. I will probably go half and half because I like to play with the money in investments (but my wife does not).
If you want just monthly payments out of you TSP account or even a mixture of annuity and the former then she needs to sign the waiver of right to the TSP purchasing her an annuity with the full balance.

KONOCTIGUY, I wanted to say thank you from the bottom of my heart & let you know how much I appreciated the valuable information you have provided to me.
That was very helpful. You are truly a very fine person.

If you and your wife are on good terms and no problems in your marriage she is much better off not accepting that 50% annuity...why would she do this when she can have it all if some how your life comes to an end before hers...I asked my financial advisor about this and she says believe it or not there are many marriages where the wife knows nothing about the family financial affairs...If this happens then the law trys to protect the spouse's right to part of his TSP..

What's Dubai World you ask. Dubai World is the reason you investors in the C,S and I funds are going to ask tommorow when the U.S. stock markets open for a 1/2 day......WTF happened! Black Friday indeed.

/m1577
So we lost 1 1/2% today. Crap happens sometimes and 10% corrections are supposed to be a part of life, unpredictable and no problem over the long term. Dubai World (by its self) is not like a year ago. Things are not OK now but we are grateful to have been invested since March and gaining 65%.

So I too had an outstanding loan through TSP, and requested a complete withdrawal of the balance. I got the letter stating that I made it a taxable income, does anyone who may have done this too before, know how long it takes to get the money? I got my letter earlier this week...Thanks

Since October 2007 to March 2009 when the S&P 500 went from 1500 to 666 and now stands at a overvalued level. I know, I know.....how all the market timers got out in September 2008 and back in in March of this year (ha,ha). This liquidity bubble rally has no fudamentals under it and this market will trade sideways at best. A weak dollar and $1100 gold is all you have to know about all assets priced in dollars (including stocks and excluding real estate) are rising. The FED can only hold interest rates this low for only so long trying to spark economic activity but will have a less than desirable outcome. Ths G fund interest rates will rise and stocks will fall when the FED starts to raise rates. Stock market is a bit of a ponzi scheme run by the investment banks and hedge funds if you havent noticed.....the individual investor just goes along for the ride those entities take it. Good luck and if you dont think that a 60 billion dollar default means nothing than..

Edited by author 11-28-2009 11:44 AM
/m1580
Yes... 60 bill does mean somethimg but it is still not like last year. Yes... the market is getting pricey but the trend has been my friend since March. I skimmed a bit of my gains off the top to save as gun powder for later but I don't think we just entered a new cyclical bear market yet.Nov.-Jan. usually treats us pretty fairly.

Commercial real estate is the reason for concern. Unemployment still rising leading to more residential real estate angst. US debt up to over 11 trillion. States including California and New York along with thirty something other states basically bankrupt (along with each states un-employment benefit pools). FED gov can come up with all the programs they want like cash-for-clunckers or 3% dowm FHA loans they want but my friend the good ole days are over. A weak dollar will fuel inflation through higher energy costs (crude oil should be trading at less than $50 a bbl based on high inventories (see natural gas) but speculators and zero interest rates have the commodities carry trade going strong. Ride the market to the moon but remember Wall St and Main St are two different stories right now. When the FED reigns in the loose money and hikes taxes and interest rates then Wall ST will reflect the pain in the real world.

this dead capitalist says many are very worried that Dubai, which is in $$$ terms not huge, is going to carry over to a host of other countries. when countries say: hey, we can't pay just now, it is usually not a good thing.