TSP withdrawal and age 55


Q. I read one day this past week that federal employees who are retiring may be allowed to make a one-time withdrawal from there Thrift Savings Plan account at age 55 without penalty due to the fact they will receive a six-month reduced (estimated to be 50 percent) annuity until the Office of Personnel Management can reconcile the employee’s account. Where is that information in writing?

A. I haven’t seen this in writing. If you read it, I presume that it must have been in writing. Where did you read it? The current law allows you take one or more distributions from your TSP account without penalty following separation from service during or after the calendar year in which you reach age 55. Maybe that’s what you think you read.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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