Q. I will be 56 in August, already have 32 years of service at USPS and I am a FERS employee. I started contributing to the Roth TSP 5 years ago. If I withdraw anything from my TSP in 2018, will I be penalized because as I recently found out all dispersals come from both the regular TSP and the Roth proportionally. Do I have to be 59 1/2 to get penalty free withdrawal from Roth TSP or am I good at my MRA + 30 retirement? I thought I had read if you retired on an unreduced retirement that there were no penalties from taking money from TSP.
A. If you separate from federal service during or after the calendar year in which you reach age 55 AND your Roth TSP account meets the 5 year requirement, your subsequent withdrawals will be exempt from the early withdrawal penalty.
