Early withdrawal penalty?


Q. I am a FERS employee, and I’m considering a June 1, 2013, retirement date. I will be 57 years old and have 29 years of service on that date. I understand that I would take a 5 percent reduction on my FERS pension for each year under age 62. Will I be eligible for the special retirement supplement? Can I take monthly withdrawals for my Thrift Savings Plan account without being liable for the early withdrawal penalty?

A. Mike: If you retire during or after the calendar year in which you reach age 55, your TSP withdrawals will be exempt from the early withdrawal penalty.

Reg: No one who retires under the MRA+10 provision is eligible to receive the special retirement supplement.


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.

Leave A Reply