Q. I am going to retire with 25 years covered law enforcement. Is there a penalty for withdrawing from the Thrift Savings Plan if I have not yet reached age 55? I heard as long as you are in a covered law enforcement position, there is not penalty?
A. What you’ve heard is wrong. If you separate from federal service before the calendar year in which you reach age 55, you will be subject to the early withdrawal penalty. There are ways around the penalty, however, and they are described on Page 7 of this notice: https://www.tsp.gov/PDF/formspubs/tsp-536.pdf.