Q. If I receive a Voluntary Early Retirement Authority from the U.S. Postal Service, can I take a lump-sum withdrawal from my Thrift Savings Plan without paying a penalty? I am 57 years old with 27 years of service.
A. Yes.
VERA and penalty-free lump-sum TSP withdrawal
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I recently did this andwas told the folling, ” If you are younger than 59 and one half you will be charged a penalty of 10%. In addition you will be charged a 20% backup witholding for fed taxes. If 59 and one half or older, you just get hit with the 20% tax witholding.