TSP penalty?


Q: I am pretty sure I know the answer to this question, but I thought I’d ask anyway. Is there some kind of penalty for a federal retiree to leave their TSP with the government at age 65 plus? A friend of mine told me that a man who is about to retire attended a retirement seminar and was told that if you leave your TSP with the federal government at age 65 you would be assessed a penalty. I do not believe this is the case.

A: Not true. In fact, you won’t find a better deal anywhere else.


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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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