Overview of the TSP Rule of 55 The TSP Rule of 55 is a provision that allows federal employees to make penalty-free withdrawals from their Thrift Savings Plan (TSP) once they separate from service in the year they turn 55 or later. This rule is especially useful for those looking to retire early, as it avoids the standard 10% early withdrawal penalty typically applied to distributio... https://www.federalpensionadvisors.com/post/tsp-rule-of-55