Here’s a little tip that made my day…
For anyone who was wise enough to start putting some of their salary into their Thrift Savings Plan while in uniform, you may have some tax free money sitting right under your nose.
If you made investment into the fund during any of your tax free deployments, those funds are tax free when you go to withdrawal! I recently asked my financial advisor to take control over the TSP and to my surprise, I received a sizeable chunk of the disbursement in the form of a check that can be cashed with no tax penalties, saving me a great deal of money AND more importantly, giving me some liquidity to pay off debt.
TL;DR? – Simple Steps:
- Have a TSP account?
- Did you pay into your TSP while on a tax-free deployment?
- Contact your financial advisor AND/OR
- Request a full/partial withdrawal by contacting TSP (1-TSP-YOU-FST — Contact Link)
So if you have a TSP, you’ve deployed, and you have a need for some capital, consider requesting that portion be disbursed!