Q: I have been awarded 100 percent permanent and total disability from the VA. I would like to take an early full withdrawal of my TSP. I have seen a comment that a waiver for the 10 percent penalty would be exempt, does the 20 percent early withdraw still apply?
A: I assume that you are asking whether, or not, mandatory tax withholding will apply to a full, lump-sum withdrawal of your TSP balance. I believe that you will be subject to mandatory 20 percent withholding from the withdrawn amount, but there may be an exception in your case. You can learn more by reading the booklet available online at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf.
