Ask The Experts: Money Matters

By Mike Miles

Early withdrawal penalty

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Q. I am retiring soon (four months) under MRA+10. Will I be penalized for a Thrift Savings Plan withdrawal at my retirement? I will be 56 at the time of retirement. I am moving from my present location to another state and plan to use the better part of it as a down payment on a home.

A. As long as you retire during or after the calendar year in which you reach age 55, your TSP withdrawal will not be subject to the early withdrawal penalty.

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