Taxes on early withdrawal from a ROTH TSP

[Gregory A.]

Hello Bigger Pockets! I am seeking some advice on withdrawing from my Roth TSP. I finished my active duty last August and have not done anything with my TSP since then. It has continued to grow, but I am interested in pulling all of the funds out to use for investing in deals for myself. I know there are some incentives to using a self-directed IRA, but I am not interested. I am more interested in liquidating this asset.

What I know currently is since it is all roth contributions and earnings and the account is over 5 years old that it should not accrue the early withdrawal penalty of 10% from their website and video posted on their website. It would also appear, that I would not be paying any income tax on the roth contributions since I already paid those taxes, but I would be liable for taxes on any roth earnings that I would take out at my federal/state income tax rates since I am withdrawing early ( I am 32 years old). 

Does any have any experience on dealing with TSPs and what kind of tax implications I am subject to?  I believe I read through all of the material available on their website but I'd rather consult an actual tax pro that may have experience.  

Thank you for your time guys.

Greg

[Carl Fischer]

@Gregory A.

A 10% early withdrawal penalty will apply to the portion of withdrawalsfrom your Roth TSP that are attributable to earnings if you separate from your federal job before the year in which you turn 55.

Contributions should be penalty and tax free. I believe earnings will be penalized 10% and then taxed.  To be sure verify with your accountant. You may have some deductions that could mitigate the taxes if you are buying income producing property. Hardship withdrawals may also be considered. Also talk to your accountant about 72t distributions. I don’t know how much money you have or what tax bracket your in so it is hard to provide better details.