Q. I am planning on retiring within a year, at the age of 55. When will I be able to withdraw funds from the TPS account without a tax penalty. My understanding is at any age once retired but I would like to make sure I am correct on this.
A. As long as you retire from federal service during or after the calendar year in which you reach age 55, your subsequent TSP withdrawals will not be subject to the early withdrawal penalty.
