Can I Make a Withdrawal From the TSP the Same Year I Turn 55?

April 8, 2015 5:37 AM
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Q: Your article (Can You Retire Before Age 59.5 Without Incurring TSP Penalties?) referenced that you can make TSP withdrawals the year you turn 55 if you retire, quit or get fired that same year. I’m under the FERS plan. My birthday is in December – can I make the withdrawal in January of that year?

A: If you retired the year you are turning 55, then yes, you would able to take a withdrawal in January. If you’re still employed, you cannot. To make a withdrawal while working, you would have to be 59.5 years old or older and make a one time, age based, in-service withdrawal.

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About the Author

Jesse Black is a financial advisor who specializes in assisting Federal Employees maximize their benefits. He is a Chartered Federal Employees Benefits Consultant and has over ten years industry experience. He has assisted thousands of people, assisted with benefit workshops and has been interviewed by the Wall Street Journal about Federal Benefits.