Ask The Experts: Money Matters

By Mike Miles

TSP withdrawal

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Q. I retired a few years ago under the VSIP/VERA program under the MRA +13 years of government service.
Can I take a withdrawal of my TSP funds out before I turn 59½? If so, what are the tax penalties and is there a 20 percent federal income tax I have to pay ? Also, is this income that will be reported on my federal and state taxes for that year?

A. Your questions are too complicated for a simple answer, since they depend upon circumstances not explained in your message. You’ll find the information you need in the notice at https://www.tsp.gov/PDF/formspubs/tsp-536.pdf.

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