Early retirement

Q: I will retire at 48 with 25 years in law enforcement. I will also want to start receiving monthly checks from my TSP. I know I will have to pay the 10-percent penalty because of my age. Is this a one-time penalty or do I have to pay this every year until I reach age 56?

A: You’ll be subject to the early withdrawal penalty until you reach age 59 1/2 unless you qualify for one of the exceptions listed on Page 4 of the notice at https://www.tsp.gov/PDF/formspubs/octax92-32.pdf.


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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