Withdrawal of funds

**Over&Out** · 09-09-2006, 06:30 AM

I've been unable to find an answer to the following question:

I took an early retirement offer from the Post Office 3 years ago at age 51 and while I don't plan to withdraw from my TSP account for as long as possible, would I be entitled to withdraw after age 55 without a 10% penalty? The closest answer I can find is that the penalty does not apply if payments are "paid after you separate from service DURING OR AFTER the year you reach age 55". How does this rule apply to early retirees? Thanks for your help.

**dell** · 09-09-2006, 07:38 PM

I retired this past January at 51. I am in FERS and was told there is a penalty plus taxes if I withdraw before age 55.

Dell

**Spaf** · 09-10-2006, 12:02 AM

dell,
I think you need "Important Tax Information About Payments From Your TSP Account" TSP-536. They may have it on-line or they can send it to you 1-877-968-3778
Rgds
Spaf