Rollover TSP to IRA or Wait out Changes

[TNCarters]

Fairly conservative investor here been retired a couple of years CSRS. Been thinking about starting to take out 2-4% a year out of my TSP money to get back closer to preretirement take home income.

What percentage of people on here roll their account out of TSP to IRA after leaving government. I know prior to recent TSP legislation it was difficult to use the TSP for monthly income and emergency use.

[Winner]

I take out 2/3 to transferred to IRA and Roth IRA then withdrawal any amount as needed. Last year gain 35% or within 3 1/2 months that almost equivalent to amount I left in my TSP account. Plan to withdraw $2k per month until 62 yoa, but income tax come I have to pay big chunk since last year I withdrew $40k to cover vacation (from West to East then return as I traveled through 21 states) and other expenses. My profits are large enough to cover several years later without touching my IRA balance transferred for my TSP. I'm not planning to touch my Roth IRA. This trade alone is enough to cover one moth withdraw http://tspcenter.com/forums/viewtopic.p ... &start=135 as I just put aside $6k to collect $4k.

[evilanne]

I took partial withdrawal, approximately 30%, as a direct transfer to an IRA. Intent is to convert over time to Roth. I'm in process of requesting full withdrawal based on life expectancy & cursing TSP for rejecting my 1st request. The online forms are helpful but it doesn't give you option to save within TSP and you have to start over if anything needs to be changed (you can save completed pdf form to your computer) and some information still has to be filled in by hand (don't use a gel pen) and then notarized. Make sure you understand the rules & process before making any withdrawal and use correct form(s); e.g. if you are considering both a partial and full withdrawal you must do the partial 1st--once you do a full withdrawal your only option currently is to follow rules or close account by withdrawing all funds or direct transfer to IRA. TSP modernization act will change the rules eventually. If doing a partial withdrawal to an IRA, I would recommend doing it for more than you think you may need in the event of an emergency. Even with my current frustration, I plan on keeping most of my funds in TSP for the foreseeable future.