Q: I am 57 and I retired from civil service in December. I have not taken anything out of my TSP account at this time. I would like to withdraw a partial payment from my TSP account and then set up monthly payments. Will I have to pay the 10 percent penalty on the partial payment because of my age and since I have been retired for almost six months?
A: Since you retired during or after the year in which you reached age 55, you will not be subject to the 10 percent early withdrawal penalty.