TSP and early retirement, redux


Q: Your response to an earlier question on Voluntary Early Retirement Authority/Voluntary Separation Incentive Payments puzzles me. If a federal employee is eligible for a retirement annuity under the Federal Employees Retirement System despite the fact they are taking an VERA/VSIP, why would there be a penalty for “early” withdrawal of TSP?

A: I think that I clearly stated a fact (“There is nothing in your question that will exempt you from the early withdrawal penalty.”) that answers your question.


About Author

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.


  1. Two to three years ago i took hardship loan due to injury at job and my case was denied one year i use my non pay staus form I m still disable to perform duty however i m receving work comp salary t0 % of allowed salary. thrift saving plan monies i can not re deposit my monies due to financial strain what are my liability tax implication and penalties

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