Withdrawing TSP Funds to Cover Debt

I am 66 years old but am still working for the federal government and making monthly deposits into my TSP funds. Can I withdraw some of the funds to take care of some revolving debt?

FedSmith.com author John GrobeBy Categories Q&A Leave a comment

Q: I am 66 years old but am still working for the federal government and making monthly deposits into my TSP funds. Can I withdraw some of the funds to take care of some revolving debt?

A: If you have not previously taken an “age-based withdrawal” from the TSP, you are entitled to take one now. The TSP has a publication on in-service withdrawals available on its website that gives detailed information about age-based withdrawals.

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.
© 2021 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

About the Author

John Grobe is President of Federal Career Experts, a firm that provides pre-retirement training and seminars to a wide variety of federal agencies. FCE’s instructors are all retired federal retirement specialists who educate class participants on the ins and outs of federal retirement and benefits; there is never an attempt to influence participants to invest a certain way, or to purchase any financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.