Special Category Employee retiring prior to 50, TSP early withdrawal penalty?


I am a Law Enforcement Officer with 26+ years; I am 48 and will turn 50 in the year 2019. With the new TSP Modernization Act of 2017, can I retire prior to 2019 (not age-based withdrawal) and avoid being subjected to early TSP withdrawal penalties if I decide to withdraw TSP before I turn 59 1/2?

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Posted by (Questions: 1, Answers: 0)
Asked on December 1, 2017 12:41 am
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Unfortunately, the 2017 TSP Modernization Act is very specific and it says as a retiring LEO you must retire in the year you are age 50 or older to be eligible to withdraw with no age penalty. If you retire, for example, now, you would have to wait until age 59 1/2 to avoid the age penalty or elect a TSP withdrawal option, such as the annuity, to avoid the age penalty.

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Posted by (Questions: 0, Answers: 353)
Answered on December 1, 2017 12:54 am