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 net result is that you'll have transferred almost all of your Roth TSP balance into a Roth IRA while keeping your Traditional TSP balance in the TSP. To avoid any unfortunate mix-ups, one should probably leave behind more than the $200 minimum in the TSP.