Withdrawal penalty


Q: I am 56 and will retire in December under FERS. I read your article in Federal Times’ Sept. 12 issue, “How to avoid TSP early withdrawal penalty.” What other options are available besides transferring my TSP to an annuity with an insurance company?

A: The article clearly explained the answer to your question – since you’re retiring during or after the year in which you reach age 55, the early withdrawal penalty will not apply to your TSP withdrawals.


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.

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