By Mike Miles
TSP rollover
December 6th, 2011 | Uncategorized
Q: If I can withdraw from my TSP if I retire in the year I turn 55 (CSRS) without the penalty, can I also roll over my TSP to a Roth IRA without the penalty? From what I have read, any rollover prior to 59 1/2 would trigger a penalty. Is there any special provision that allows the rollover at 55, like the early withdrawal for federal employees? Because I may be in a higher tax bracket later in my career, I would like to move it now, but not at the expense of the 10 percent penalty.
A: If you retire during the calendar year in which you reach age 55, you may withdraw from your TSP after retirement without incurring the early withdrawal penalty.
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