Q. I will retire under the law enforcement FERS category at 52 with a $400,000-plus balance. Can I take out a $100,000 lump sum at retirement without a penalty and then roll over the rest into a personal IRA?
A. In this case, your lump sum withdrawal at age 52 will be subject to the early withdrawal penalty unless you roll it over. You may roll your TSP balance over to an IRA any time after you retire.