10% penalty for early withdrawal of tsp

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board 10% penalty for early withdrawal of tsp

This topic contains 1 reply, has 2 voices, and was last updated by  TS Paul 1 year, 11 months ago.

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  • #22678

    weaton177
    Participant

    I am a 55 year old retired federal employee. I retired under the “discontinued service provision” in Nov 2014. my question is this: Can I take a portion of my tsp out now (before I turn 59 1/2) to purchase a farm and avoid the additional 10% penalty for early withdrawal. I heard and have read some of the IRS code dealing with 72t plans that can help you avoid the tax. My second question is: Can I take a large portion out for down payment on the land and use the remaining balance under the 72t plan for equal payments and avoid the 10% early withdrawal. Whomever can help me, I sure would appreciate it.
    weaton177

    #22679

    TS Paul
    Keymaster

    That’s way outside my limited expertise, so hopefully another reader will have some idea.

    If you don’t get an answer here, my go-to guy for questions like this is Dan Jamison at fersguide.com.

    The TSP Allocation Guide www.TSPallocation.com

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