Browsing: early withdrawal penalty

Q. I retired as a federal law enforcement officer with 26 years of service at age 48 in 2015. Then the law was passed to allow those who retire the year they turn 50 or after to make penalty-free withdrawals. I’ve read about the IRS rule of 72(t) option and to me it seems as if — as long as I wait until I turn age 50 and invoke the rule of 72(t) — I should be able to make additional withdrawals without incurring the penalty. Is there an exception for those FLEOs who are allowed to retire with 25 years…

Q. I am a military technician and was told I’m under a special military technician early retirement 50/25 and will have 34 years of service, 4 years of which was active duty. I bought back my time and plan to retire in December. I will be 54 years old. If I start withdrawing from my TSP, will I be penalized 10 percent because I’m not 56 years old yet?

Q. I will be 61 when I plan to retire with 38 years in service under CSRS the entire time. I am not counting on the TSP as part of my retirement and plan to use the money for home repair, paying certain loans, etc. What penalty/tax percent will I incur? I was planning on retiring in December, but January might be better for taxes on less income received.

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