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.
However, a CSRS employee's contributions to a TSP account are tax-deferred, that is, the contribution is not taxed until the funds are withdrawn from the TSP, rather than at the time the funds are earned and first deposited. Under some circumstances, withdrawal of CSRS funds can result in tax penalties.