Thread: New TSP withdrawl at age 50 no penalty

Originally Posted by hessian

Squalebear,
1st What law(in mid-2010) provides for "us" the 1.7%??
2nd What does LEO stand for?
I may be in the boat, since my Disability was granted in Mar 2010, and I also still have not recieved a "Final Payment Amount" (still "interim)!
Before Mar 2010, I was LWOP for just over 2 months.
Thanks and VR!

LEO = Law Enforcement Officer, specifically FLEO (Federal Law Enforcement Officer).

Originally Posted by dhstdog

Fellow law enforcement and firefighters see 2010 IRS publication 575 page 31 we are exempt from 10% penalty ON TOP withdraw at age 50. Where is the TSPpublication on this? Am I reading it wrong? Google it and let me know ur thoughts and opinions. Thanks dhstdog

Qualified public safety employees.
If you are a qualified public safety employee, distributions made from a governmental defined benefit pension plan are not subject to the additional tax on early distributions. You are a qualified public safety employee if you provided police protection, firefighting services, or emergency medical services for a state or municipality, and you separated from service in or after the year you attained age 50.

We've already covered this in this thread t-dog. It's not fair, I agree, but that's what the law says. I've already researched this extensively. It's probably just an oversight when the regs were written and one that no congressman has much interest in addressing.

The only ways you as a Federal retired LEO can access the TSP early without the 10% penalty are as I described in my previous post.

The reason lies not in the jurisdiction, but rather in the actual condition.

The exclusion only applies to early distributions from defined benefit plans, and the TSP is a defined contribution plan.

If TSP were a defined benefit, and not a defined contribution we would qualify. This is more than an oversight, this is structural.