Greetings my fellow service members! I’m currently transitioning out the military. I’m a very ambitious person so I don’t believe in working at the age of 60. So therefore my TSP has little value to me. I’m wondering the best possible way to pull out the money from my TSP and use it for my own personal use into achieving my ambitious goals. I’ve heard I can transfer my TSP into a Roth IRA and withdraw the money that way without receiving any penalties. I happen to have a Robinhood account and I know I can set up an IRA through them with a 5% match. My question is if I transfer my TSP into my Robinhood Roth IRA , will I truly be able to withdraw that money without penalty??
Posted by Juiceoo_
2 Comments
You can “not believe in working until 60”, I also do not plan to work until my 60’s however you’ll take a massive cut lost to taxes and fees and whatnot just to convert it to presumably very high risk ventures. You’d be MUCH better off just leaving that money there, as a lower risk venture that you can pull from once you hit your 60’s, so if this all goes tits up and fails, you at least have something, and if it all goes great and you have a ton of money, it’s like its own little stimulus ontop.
https://www.irs.gov/retirement-plans/hardships-early-withdrawals-and-loans
You can’t just move the money around to some different IRA and somehow that IRA doesn’t have any of the same rules applied to it, so no.
You don’t want to work at 60, so you want to get rid of your TSP now? Seems like you’d want to keep your TSP for that very reason.