Federal employees separating from service during the year they turn 55 can benefit from the TSP Rule of 55, which allows penalty-free withdrawals from their Thrift Savings Plan. While this eliminates the 10% early withdrawal penalty, regular income taxes still apply. This rule provides financial flexibility for early retirees but is restricted to TSP accounts. It does not extend to IR... https://www.federalpensionadvisors.com/post/tsp-rule-of-55