The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: TSP withdrawal question||Date: 9/15/2003 4:59 PM|
|Author: lorenzo2||Number: 66885 of 125695|
Will she have to pay tax on the amount withdrawn?
Assuming she does, will she also have to pay a penalty (she is under age 50)?
Finally, can she avoid any tax and penalty if she returns the money to the TSP within some set period (60 days???)?
No. What's more, she can't resume making contributions to TSP for 6 months. I suggest you or your friend go here:
and read about withdrawals. Note that the consequences of withdrawals, even for hardship reasons, are pretty severe. Is she aware that she can make a loan against her TSP balance?
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