Q: I will be 59 in October 2010. I retired about four years ago under the old CSRS system and contributed to the TSP while I was employed as a federal civil servant with the Navy. What is the earliest age I can withdraw from the TSP without penalty? I see information on being required to withdraw by the age of 70 1/2 but nothing on the earliest age to withdraw.
A: If you separated from federal service during or after the calendar year in which you reached age 55, you may withdraw your money now without penalty. Otherwise, you’ll have to wait until you reach 59 1/2.