Q. I will be 58 years old on Nov. 9, 2018. I retired from government service in December 2017 after 30 years and 4 months of service. I at 57 and have heard that I can possibly begin withdrawals without a 10 percent tax penalty due to this fact. I need verification of this, and I also need a wise withdrawal strategy to make my TSP money last the life of my current retirement, although I plan to try to go back to work maybe part-time by Spring 2019.
A. I won’t advise you, but I will answer your question: Since you retired from the federal government during or after the calendar year in which you reached age 55, your TSP withdrawals in retirement will be exempt from the early withdrawal penalty.