Avoiding TSP withdrawal penalty


Q. I want to retire at age 58 and begin tapping my Thrift Savings Plan. I will have 15 years of federal service time. What can I do to avoid paying any penalty?

A. Since you are retiring during or after the calendar year in which you reach age 55, your subsequent TSP withdrawals will not be subject to penalty.


About Author

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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