Before you begin in the comments, I'm aware of the drawbacks of doing this, as well as the missed opportunity from compound interest, and also the fact that if I withdraw from my 15k total in TSP that I will surely be homeless when I'm older (/s). I am separating fairly soon, and if everything works great I could have a job at one of 4 Fortune 500 companies with retirement plans that literally dwarf the TSP in employer contributions, and yes also the fees are comparable to TSP. In this scenario, I would certainly roll over my current balance. I, as a father and husband need to plan for the worst. If I don't get that sparkly job then I currently have 20k and will have unemployment benefits for me to weather the storm. In this case, the extra 10k after fees and taxes could be a major gamechanger and prevent me from actually experiencing homelessness for an extra 3-4 months. Now that my reasoning is out of the way, I have 2 questions for someone who has withdrawn early after seperation. First, how long does it take for TSP to recognize that I am separated from the service? Secondly, how long does the xfer take? Thanks

    Early withdrawal from TSP.
    byu/Hot_Pain_3253 inMilitaryFinance



    Posted by Hot_Pain_3253

    1 Comment

    1. It’s not worth it. Forget the money exists. You will be taxed 80 cents on the dollar if you try and get it now. There are other ways to get money if you need it. If your job is that good and you’re strapped get a credit card.

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