When you retire from federal service, your Thrift Savings Plan goes from "put money in" to "take money out." The problem is, if you guess wrong on your TSP withdrawals, you won't feel it right away. You feel it 10–20 years from now, when it's too late to fix and you've accidentally tipped six figures to the IRS. In this episode of Confident Federal Retirement, I walk you through the main TSP withdrawal options once you separate from federal service, what really happens behind the scenes, and how these choices fit into a step‑by‑step retirement income plan.
We'll cover leaving money in the TSP, setting up installments, taking partial or full lump sums, and using the TSP life annuity option. You'll hear how taxes, the 10% early withdrawal penalty, and required minimum distributions (RMDs) actually work in practice, plus common mistakes federal employees make when rolling money out of the TSP. You'll also learn why timing, account order, and spousal consent can quietly make or break your long‑term plan.
When you're ready for one‑on‑one help, visit https://gtwealthguide.com/federal-blueprint to request a personalized Federal Retirement Plan and schedule a call.
We'll map out your federal benefits, TSP, Social Security, and tax plan on one page so you can retire from federal service without guessing.