Avoiding Early Withdrawal Penalties with the Rule of 55 TSP One major benefit of the TSP Rule of 55 is avoiding the 10% early withdrawal penalty. If you retire at age 55 or older and leave federal service, you can access your TSP savings without penalty. This only works if you keep your funds in the TSP account. Moving them to an IRA could cancel out the benefit. TSP Rule of 55 withd... https://www.federalpensionadvisors.com/post/tsp-rule-of-55