Q. I retired from the Federal Bureau of Prisons on November 28,2014. I withdrew a part of my TSP receiving it on February 17, 2015. When I received my 1099 it identified my distribution code as 1 -early premature distribution. Why is it not code 2-early distribution exception applies, since I am federal law enforcement?
A. Since you separated from federal service before the calendar year in which you reach age 55, your distribution in considered an early distribution unless you can qualify for one of the other exceptions listed on Page 7 of the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf.