TSP withdrawal to pay off mortgage


Q. I was wondering if I would have to pay the 10 percent penalty to make a partial withdrawal from my TSP to pay off my mortgage. I’ll be 56 years old with 32 years of federal service when I retire. 

A. Since you are retiring during or after the calendar year in which you reach age 55, your TSP withdrawals in retirement will be exempt from the early withdrawal 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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