How do I close my TSP account? Or is it faster to do a hardship withdrawal?

SPC Private RallyPoint Member — Mon, 22 Feb 2016 08:26:58 -0500

Response by Col Joseph Lenertz made Feb 22 at 2016 8:31 AM

Col Joseph Lenertz — Mon, 22 Feb 2016 08:31:37 -0500

Why do you want to close it? After I closed mine, I learned it had the lowest fees of any retirement account I had. Crap. If you can possibly afford to leave it in there...I recommend you consider leaving it.

Response by CPT Private RallyPoint Member made Feb 22 at 2016 9:23 AM

CPT Private RallyPoint Member — Mon, 22 Feb 2016 09:23:32 -0500

I wouldn't close it. I did a withdrawal on mine once. It can be done pretty easily and I had the money pretty quick. I still have my TSP and the loan was a very low interest rate. You will have to set up an allotment that they will set up for you. It was easy.

Response by SPC Paul Jennings, J.D. made Feb 22 at 2016 9:31 AM

SPC Paul Jennings, J.D. — Mon, 22 Feb 2016 09:31:26 -0500

It can be quicker to do a TSP loan, if you qualify. With a hardship withdrawal your likely going to face a 10% early withdrawal penalty as well. I'd never recommend that someone withdraw from any retirement account early if it could be avoided. Depending on your circumstances, other avenues such as a short term loan (from a bank not a payday vendor!) can provide necessary funds. Without knowing specifics though I can't really comment further.