Early withdrawal penalty

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Q. I was a federal employee for 10 years, and I want to make a withdrawal of a portion of my funds. How badly will I be penalized for making the withdrawal? I went through a divorce as of Nov. 7, and I am in hardship of funds.

A. The answer depends upon your circumstances. If you are talking about the Thrift Savings Plan, you will be subject to the 10 percent early withdrawal penalty on any earnings if you are under age 59½ and don’t qualify for at least one of the exceptions listed on Page 7 of the notice posted at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf.

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