Withdrawing funds from TSP


Q: If you have a TSP account and you have been gone from working for the federal government since 2006, can you withdraw your funds without any early withdrawal penalty fees?

A: Only if you separated from federal service during or after the year in which you reached age 55, have reached age 59 1/2, withdraw funds using a series of Substantially Equal Periodic Payments, use the money to buy a life annuity, or meet one of the specific exemptions to the penalty, which include disability and certain medical expenses. See the notice at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf for more information.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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