TSP access and penalty


Q. I retired under the provisions of early retirement for law enforcement officers on Jan. 1, 2011, under CSRS after 35 years of federal service. At the time I retired I was 54 years old, but will be 55 years of age in September. From what I have read in the TSP booklet regarding the 10 percent early withdrawal penalty and cited exceptions to this penalty, I would not be subject to the penalty in that I separated from service during the year I reached age 55. Is my interpretation correct, in that I did not have to actually be 55 years of age at retirement, only have retired in the year I would have reached age 55?

A. You are correct.


About Author

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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