The TSP Rule of 55 is an essential provision for federal employees who plan to retire before reaching age 59½. By allowing penalty-free access to Thrift Savings Plan funds for those who separate from service at 55 or later, this rule provides early retirees with financial flexibility. However, while the 10% penalty is waived, withdrawals are still subject to taxation. Understanding ta... https://www.federalpensionadvisors.com/post/tsp-rule-of-55