TSP withdrawal without penalties


Q. I was a federal technician who was also in the Air National Guard. I was found physically unfit and left under technician disability. I had a TSP account. My last day as a technician was May 3, 2013. I was 55 in March of that year. Can I get all money withdrawn without penalties? Will there be federal and state penalties?

A. Since you separated from covered service during the calendar year in which you reached age 55, your TSP withdrawals will be exempt from the early withdrawal penalty. See Page 7 of the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf for more information.


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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