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.
If desperate times call for desperate measures, understanding when you can cash out your TSP and the resulting tax consequences can help you determine if you can withdraw the money and, if so, how much you need to take out to meet your needs after accounting for the taxes and penalties.