Q. I am 53 years old with over 25 years of federal service (FERS). I am taking a discontinued service retirement. When can I access my TSP without penalty?

A. If you want a lump sum and no other exceptions apply, you’ll have to wait until you are 59 ½ years old. You may take a series of substantially equal periodic payments under IRC section 72(t) from your account after you separate and avoid the penalty before then. See page 7 of this notice for a list of available exceptions to the early withdrawal penalty. If you want to use 72(t) payments, you should consult a tax adviser for further guidance before proceeding.


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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