How a Hardship Withdrawal Works A hardship withdrawal allows individuals to access funds from their TSP in situations of financial need.

To qualify for a hardship withdrawal, a thrift savings plan participant must have an immediate and significant financial need that necessitates a distribution from his or her TSP account.

Roth TSP withdrawals: Qualified withdrawals from a Roth TSP are tax-free, making this a valuable asset in retirement.

Here’s what I’ve learned from financial planners about the various withdrawal options: Withdrawing a large lump sum payment from your pre-tax TSP balance may have unfortunate tax consequences.

Indirect rollovers involve you withdrawing the funds and sending them to the Roth IRA yourself. Withdrawing funds from a TSP, Roth or traditional, is a relatively straightforward process.

Fact checked by Ryan Eichler Reviewed by Ebony Howard The Federal Employees' Retirement Security Act of 1986 established the Thrift Savings Plan, or TSP. It is a qualified retirement plan for ...

Based in Florence, Alabama, the firm offers one-on-one consultations that include pension reviews, insurance comparisons, TSP withdrawal strategies, and timeline planning.

Transferring funds from a Roth TSP to a Roth IRA is a relatively straightforward process, yet it can prove costly if you don’t understand the rules.