Q. I retired under the CSRS at age 55 with 35 years of federal government service. I want to purchase a second home by making a one-time partial withdrawal from my Thrift Savings Plan. Is this partial withdrawal subject to the 10% IRS tax under the one-time withdrawal provision? Also, what other penalties are there?
A. Since you retired at 55, your TSP withdrawals will not be subject to the early withdrawal or any other penalty.