Just asking how others handle this. My plan was to pull out a "lump sum" every Nov/Dec knowing I'd be able to get back some of the taxes when I file the next year. Now, I'm thinking it may just be smarter to transfer the funds into a my IRA - then withdraw from the IRA. Still would eventually have to pay the taxes, but would have the flexibility to lower the tax rate. TSP withdrawal is locked in at 20% (for me). My financial institution lets me set the rate. What do ya'll think?
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