Q. I work with the U.S. Postal Service. I will reach full retirement age at 62 when I have 25 years. Would I be eligible to withdraw money at age 59 ½ from my TSP without a federal tax penalty? I understand the normal taxes would be due according to my tax bracket.
A. Once you reach age 59 ½, you will be eligible for a one-time, age-based, in-service withdrawal without penalty.