Additional 10 percent TSP penalty tax


Q. My wife and I are both 56-year-old retiring U.S. Postal Service FERS employees with over 30 years service. We each want to take a small lump withdrawal from our TSP and also receive monthly payments (not based on life expectancy). Will we be subject to an additional 10 percent penalty tax?

A. If you retire at 56, your subsequent TSP withdrawals will be exempt from the early withdrawal penalty.


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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 and view his blog at

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