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 remove funds from your Thrift Savings Plan before age 59 1/2, be prepared for penalties. Because a TSP is a defined-contribution plan, not only do early withdrawals incur penalties, they also reduce the amount of money available in retirement. TSP regulations prohibit repayment after money is removed.