1. What is TSP Retirement Withdrawal?

The TSP (Thrift Savings Plan) retirement withdrawal calculator helps determine how much you can withdraw from your retirement savings based on your account balance and chosen withdrawal rate.

2. How Does the Calculator Work?

The calculator uses the simple withdrawal formula:

Where:

• \( Balance \) — Your current TSP account balance in USD
• \( Rate \) — The withdrawal rate (typically between 0.04-0.05 for sustainable retirement withdrawals)

Explanation: This calculation shows how much you can withdraw from your retirement account while maintaining your principal balance.

3. Importance of Withdrawal Calculation

Details: Proper withdrawal calculations are essential for retirement planning to ensure your savings last throughout your retirement years.

4. Using the Calculator

Tips: Enter your current TSP balance in USD and your desired withdrawal rate (e.g., 0.04 for 4%). All values must be valid (balance > 0, rate between 0-1).

5. Frequently Asked Questions (FAQ)

Q1: What is a safe withdrawal rate?
A: The 4% rule is commonly recommended, but your personal rate depends on your age, life expectancy, and risk tolerance.

Q2: How often should I recalculate my withdrawals?
A: Annually, to account for market changes and your remaining balance.

Q3: Are TSP withdrawals taxable?
A: Traditional TSP withdrawals are taxed as ordinary income. Roth TSP withdrawals may be tax-free if conditions are met.

Q4: Can I change my withdrawal rate later?
A: Yes, you can adjust your withdrawal rate, but significant changes may impact your long-term financial security.

Q5: Does this account for inflation?
A: No, this is a simple calculation. For inflation-adjusted withdrawals, you would need to factor that in separately.