Q. I hope to retire at the end of this year. I have 33 years in the U.S. Postal Service and will be 56. I understand there is no early penalty for TSP withdrawals for USPS employees. I live in New York. Is there a rule about withdrawing money from the TSP without an early penalty before 59½ years old?
A. If you separate from federal service during or after the calendar year in which you reach age 55, your subsequent TSP withdrawals will be exempt from the early withdrawal penalty.