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.
There are some reasons why you might not want to borrow from your TSP, even if you have the option. 1  When you borrow your pre-tax dollars from your TSP, you have to pay yourself back with after-tax dollars. This means to pay back $100, you may actually have to earn $128 or so.