TSP Rule of 55: How to Access Your Retirement Funds Early Without Penalty
When Not to Use the TSP Rule of 55
The TSP Rule of 55 isn’t for everyone. If you plan to keep working in another job or don't need immediate access to your funds, it might be wiser to delay withdrawals. Also, if you roll your TSP into an IRA, you forfeit your eligibility for this rule. Tsp rule of 55 withdrawal rules only apply if the funds stay in TSP. Using the rule of 55 TSP without careful consideration could result in lost growth potential or unnecessary taxes. Evaluate your full financial picture before making early withdrawals, and consult an expert to avoid missteps.