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.
You are allowed to take out a one time one lump sum amount but after that, if you plan on taking another withdrawal, you must take out the entire remaining TSP balance. So you can not use your TSP as a ârainy dayâ or emergency fund pulling withdrawals as you need them. Also keep in mind if you took an Age Based In Service Withdrawal while working, that counts as a lump sum withdrawal and in retirement you must take your entire balance out if you need a lump sum withdrawal. Option 2: Monthly Payments. The second withdrawal option you have with the TSP is monthly payments.