Withdrawing from TSP without a penalty


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.


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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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