This may sound a fanciful scenario, yet recent events across Europe â including the looming independence referendum in Scotland â tell a very different story. Six days ago, the people of Spainâs most prosperous region, Catalonia, voted overwhelmingly for parties favouring the breaking away from Spanish rule.
1 If you are 55 or older and retired, you can withdraw from your TSP without being charged the 10% tax penalty (which is normally tacked onto early withdrawals) in addition to regular income taxes.
If you do not repay the loan within the required time frame, the TSP will declare a taxable distribution, meaning you will be liable for taxes and penalties. There are two types of allowable withdrawals while in serviceâage-based and financial hardship. Age-based withdrawals are available to those age 59 1â2 or older.