Will the New TSP Options allow me to make a withdrawal even if I am receiving monthly payments?

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I am not LOE. I retired under FERS during a VERA/VISP offering. I was 54 when I retired, but I just recently started taking monthly TSP payments at age 56. Will I be able to make any withdrawals from my TSP account without any additional penalties from the IRS when the new TSP Options are available?

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Posted by (Questions: 2, Answers: 0)
Asked on May 15, 2019 7:01 pm
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You will be able to take more withdrawals when the TSP Modernization Act is implemented. The scheduled implementation date is September 15, 2019. For example, you would be able to take an individual payment, even if you were taking monthly payments; or you would be able to stop, start, or change your monthly payments at any time.
What will not change is the rule on the 10% early withdrawal penalty. You say you retired when you were 54. If you turned 55 in the calendar year in which you retired, you are exempt from the early withdrawal penalty. On the other hand, if you didn’t turn 55 until the calendar year after your retirement, you will be subject to the early withdrawal penalty until you reach the age of 59 1/2 unless you are using a life-expectancy based methodology in taking your withdrawals; the TSP Modernization Act does not change that.

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Answered on May 16, 2019 7:29 pm
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I turned 57 in 2018 the calendar year in which I retired from federal service with 35 years and 6 months. I withdrew money from my TSP and was charged a 20% early withdrawal penalty. Since I was 57 should I have been subjected to pay the early withdrawal at 20%. If not how do I get my money back? I turned 57 on the 26th of July 2018 and retired 31 July 2018.
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Answered on May 22, 2019 9:34 pm
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Truly sorry posted question to wrong post.

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Answered on May 22, 2019 9:48 pm
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Truly sorry posted question to wrong post.

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Posted by (Questions: 1, Answers: 3)
Answered on May 22, 2019 9:48 pm