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.
The TSP will automatically withhold 10% of the funds you withdraw unless you instruct them to withhold a different amount. Penalties: If you are less than 59 1/2 when you make the withdrawal, you may be subject to a 10 percent early withdrawal penalty tax in addition to the income tax.