Q. I am 58 years old and seeking retirement soon after my 62nd birthday. I would like to withdraw my Thrift Savings Plan when I am 59 1/2, in a lump sum. How much will I have to pay in penalties and taxes?
A. It sounds like you will be taking an age-based, in-service withdrawal. The amount withdrawn from your Traditional account will be taxed as Ordinary Income. There will be no penalty for early withdrawal.