Q. If I receive a Voluntary Early Retirement Authority at age 54, when and what options will I have to withdraw money from my TSP account? It is my understanding I have to be 55 before I can withdraw money without the penalty. I assume I would be able to start the date I turn 55 and if that is true, are the same withdrawal options available to me as if I retired after I turned 55? Also, if I take monthly payments, when can I change those?
A. Once you separate from service, you may take a lump-sum withdrawal or a series of monthly payments, or both, if you haven’t already taken a partial lump-sum withdrawal. If you separate from service during or after the calendar year in which you reach age 55, you will not be subject to the early withdrawal penalty. The amount of monthly payments may be changed once each year, effective in January. Visit www.tsp.gov for more information.