9 Ways to Avoid an Early Withdrawal Penalty

9 Ways to Avoid an Early Withdrawal Penalty

During my benefits training sessions, we focus on the various options for taking distributions from your Thrift Savings Plan (TSP) when you retire. Usually, someone asks about getting access to their money before retiring and mentions that they’ve heard there is a penalty. Someone else in the class will tell us that they’ve been told of a mysterious rule called 72(t) that is supposed to provide exceptions to the penalty. Let’s take the mystery out of the rule by discussing the nine ways to avoid an early retirement penalty.

Spousal Rights in the Thrift Savings Plan

Spousal Rights in the Thrift Savings Plan

Most Federal employees that I talk with during benefits briefings are aware that their spouse has a right to receive a survivor annuity from their pension after they’ve passed away. This is a very valuable benefit which most Feds choose to accept at the time they retire. But fewer know that their spouses also have rights to the money in their Thrift Savings Plan (TSP) account. Let’s clarify your spouse’s rights to the money in your TSP.