1. What is TSP Monthly Withdrawal?

The TSP (Thrift Savings Plan) monthly withdrawal calculation helps federal employees and retirees determine how much they can withdraw from their retirement account each month based on their account balance and desired annual withdrawal percentage.

2. How Does the Calculator Work?

The calculator uses the TSP withdrawal formula:

Where:

• \( Balance \) — Total TSP account balance in USD
• \( Withdrawal\ \% \) — Annual withdrawal percentage

Explanation: The formula converts the annual withdrawal percentage into a monthly amount by dividing by 12 months.

3. Importance of Withdrawal Calculation

Details: Proper withdrawal calculations help ensure your retirement savings last throughout your retirement while meeting your monthly income needs.

4. Using the Calculator

Tips: Enter your total TSP balance in USD and your desired annual withdrawal percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a safe withdrawal percentage?
A: The traditional "4% rule" is often cited, but your ideal percentage depends on your age, life expectancy, and other income sources.

Q2: Are there penalties for TSP withdrawals?
A: Withdrawals before age 59½ may incur a 10% penalty, with some exceptions. Consult a tax professional for your specific situation.

Q3: How often should I recalculate my withdrawals?
A: Annually, or whenever your account balance changes significantly due to market performance or additional contributions.

Q4: Can I change my withdrawal amount later?
A: Yes, TSP allows you to adjust your monthly withdrawals, though there may be restrictions on frequency of changes.

Q5: Are TSP withdrawals taxable?
A: Traditional TSP withdrawals are taxed as ordinary income. Roth TSP withdrawals may be tax-free if certain conditions are met.