Browsing: early withdrawal penalty

Q. I will be retiring from the U.S. Postal Service in September after 30 years. I started Roth deposits in my TSP in 2014. I know if I withdraw before five years (Jan. 1, 2019), the interest portion from the Roth part will be taxable along with the conventional part. If I withdraw monthly before Jan. 1, 2019, will the interest in the Roth portion become tax-exempt after Jan. 1, 2019, or do I have to wait until Jan. 1, 2019, to start withdrawals to keep the Roth portion tax-exempt later on?

Q. I am a full-time federal technician in the Air National Guard. I am 54 years old with 33-plus years of military time and 27-plus years as a federal technician (under FERS). I have recently been involuntarily separated from the Air National Guard. This means I am losing both my full-time technician position as well as my part-time military position. I understand that I will be able to draw my FERS retirement (based on my total federal time) along with the Federal Retirement Supplement. Based on my involuntary separation, am I able to start drawing from my TSP without penalty?

Q. I am about 10 years from retiring from the federal government and would like more information on Medicare and Social Security. I was thinking about not taking my Social Security until I am 67 years old. My friend said she is applying for hers as soon as she is eligible (62). How do I determine which age is best for me? Are there comparison charts that will show me approximately what my overall benefit would be if I applied for social security at 62 versus 67?

A. I was looking for some information regarding VERA and what effects it will have on benefits including TSP. I heard that you cannot withdrawal from TSP until age 55 without penalty. I was also told when I called the TSP helpline that even with a VERA, if you leave before age 55, you cannot withdrawal from TSP until age 59½ to avoid penalty. Does anyone know if what I was told is correct? I find it hard to figure things out with the TSP publications available. And you never know if the person you spoke with really knows. Can you…

Q. I plan to retire May 31, 2017, at 51 years old. I am a federal law enforcement employee eligible to retire at age 50 (I have 22½ years as a law enforcement officer and 26 total years). I need to access my TSP immediately to pay emergency expenses. If I request a hardship withdrawal prior to my retirement date, will I be subject to the 10 percent early withdrawal penalty?

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