Ask The Experts: Money Matters

By Mike Miles

Tax withholdings and TSP withdrawal

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Q. I will be taking the early-out in July. I have been a postmaster for 24 years, and I am 55½ years old. I have plans to withdraw my Thrift Savings Plan. Will there be any penalties, and will taxes be taken out?

A. There will be penalty for early withdrawal. You’ll find the tax withholding requirements on Page 3 of this notice:

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  1. Mike Miles Says:
    June 4th, 2012 at 8:05 am

    This entry contains a typo. It should say that there will be NO penalty for early withdrawal.