Early retirement

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Q. I am a FERS employee with 29½ years of service. I am 54 years old. If they offer an early-out this year, could I take it without being penalized for the years before age 56? Would I be able to collect the special retirement supplement? Also, will I have a problem if I remove the money I have in my Thrift Savings Plan account?

A. Mike: If you separate from service before the calendar year in which you’ll reach age 55, your TSP withdrawals may be subject to the IRS early withdrawal penalty, but otherwise, you’ll have access to your TSP money through a partial or full withdrawal.

Reg: Because you have at least 25 years of service, you could retire at any age without penalty. However, you wouldn’t be eligible for the special retirement supplement until you reached your minimum retirement age, which in your case is 56.

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