Q: I will retire at 48 with 25 years in law enforcement. I will also want to start receiving monthly checks from my TSP. I know I will have to pay the 10-percent penalty because of my age. Is this a one-time penalty or do I have to pay this every year until I reach age 56?
A: You’ll be subject to the early withdrawal penalty until you reach age 59 1/2 unless you qualify for one of the exceptions listed on Page 4 of the notice at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf.
