Q: Based on your answers to previous questions, if I retire at age 58 (my MRA is 56) with 15 years service, I can start receiving payment immediately. Why is it my Human Resources folks and the printed literature I read says I have to wait until I’m 59.5?
A: The exceptions to the early withdrawal penalty are listed in the section titled “Additional 10% penalty tax if you are under age 59 /12” on page 4 of the TSP tax notice at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf.
