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.
When you take a withdrawal from your TSP account, you can't make any contributions for six months, and the money you remove no longer earns interest, so you are at a definite disadvantage. After you determine how much you need, head over to the TSP website and fill out a Hardship Withdrawal form. You will have to justify to the TSP Board that you need the money-no frivolous expenses such as sports cars and designer handbags are allowed.