Early withdrawal penalty


Q: I’m covered by FERS and my agency is offering an early out. I’m at my MRA of 56 with just under 25 years of service. If I separate from service, can I access my TSP, either in the form of a lump sum, monthly payment or a combination of these? And can I do so without the penalty usually levied if a person is under 59 1/2 years old?

A: Since you are retiring from federal service during or after the calendar year in which you reached age 55, you will have access to your TSP account without suffering the early withdrawal penalty.


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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