Using TSP to Pay Off Debt

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“I have a tsp question for you concerning the new TSP withdraw options. I retired in 2015 from air traffic control at age 50. Will I be able to make a withdrawal? I would like to withdraw maybe $20000 to help pay some debt. If I can do that what is the tax rate and what will it do to my taxes at the end of the year? Thank you for any help you can give. I’m not sure who I can ask these questions. I’ve read the fact sheet but it doesn’t address this specifically.” – Susan

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ABOUT THE AUTHOR

Micah Shilanski, CFP®, is a distinguished financial planner known for his deep commitment to providing exceptional advisory services to his clients. As the founder of Plan Your Federal Retirement, Micah has dedicated his career to helping federal employees understand and optimize their benefits to ensure a secure and prosperous retirement. His expertise is widely recognized in the industry, making him a sought-after speaker and educator on financial planning and retirement strategies.

Micah’s approach is client-centered, focusing on creating personalized strategies that address each individual’s unique needs. His work emphasizes the importance of comprehensive planning, incorporating aspects of tax strategy, investment management, and risk assessment to guide clients toward achieving their financial goals.

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