TSP “early” withdraw penalty when DSR?


I’m a military technician (FERS) and have a mandatory retirement age of 56, therefore I will end up with a Discontinued Service Retirement (DSR). When I retire will I be able to pull money out of my TSP without getting an early withdraw penalty since I wont be 59 1/2 yet?

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Posted by (Questions: 1, Answers: 0)
Asked on September 6, 2017 7:15 pm
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If you separate at the age of 56 (as it appears you will), you are not subject to any early withdrawal penalty from the TSP. Anyone who separates from federal service in the year in which they reach 55 (or later) is not subject to the penalty regarding withdrawals from the TSP. The 59 1/2 age for early withdrawal penalties only applies to IRAs. The TSP (and other employer sponsored plans) use age 55.

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Posted by (Questions: 0, Answers: 64)
Answered on September 7, 2017 2:34 am
By in the year you turn 55 do you mean the calendar year or any time after you turn 54 if you retire in that year.
( at November 18, 2020 11:36 pm)