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.
Other Withdrawals. If you withdraw money from your TSP for any other reason, it will get hit by the early withdrawal penalty. This adds an extra 10 percent charge on your entire withdrawal. In addition, you will get frozen out of the TSP program for the next six months.