Accessing the TSP Without Penalties

1 Accessing the TSP Without Penalties The thrift savings plan (TSP) is similar to a 401(k) plan in that everything in the TSP is tax-deferred. Because it is tax-deferred, there are rules and restrictions if you retire before a specified age and withdraw money from your account prior to age 59 . The TSP is unique in that any Federal employee who retires in the calendar year in which they are 55 or later can access any and all money in their TSP account Without penalty. However, if you retire prior to the year in which you are age 55 there is a 10% early withdrawal penalty on all withdrawals prior to age 59 unless you withdraw funds based on actuarially projected life expectancy. There are two possible withdrawal methods: 1) substantial equal installments based on actuarially projected lifetime payments and 2) a true annuity. Both of these withdrawal options are available at any age with no early withdrawal Penalties .

1 Accessing the TSP Without Penalties . The Thrift Savings Plan (TSP) is similar to a 401(k) plan in that everything in the TSP is tax-deferred. Because it is tax-

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