I retired from federal service in Nov 2014 under the "discontinued service provision" I have several hundred thousands in TSP. I am 55 years old and wanted to take some of the money out to buy a small ranch. I have a couple of questions,
1. First of all, Will I be taxed a 10% early withdrawal penalty from the IRS (because I am taking money out prior to age 59 1/2) ?
2. I heard one way to avoid the 10% early withdrawal is to set up a 72t plan. The question I have is can I take a large portion maybe $100,000 to make a down payment on real estate and then use the rest for "equal payments" required under the 72t plan? I will have military retirements kicking in at age 60 and will hopefully have income from the farm as well so I am not that worried about depleting my entire tsp account.
I sure hope you can help.