Rule of 55

[Terriblebrat]

I retired 12/31/2022. It is listed as my date of separation on my OPM paperwork. My annuity commencement date was 1/1/22. I turned 55 in 2023. Am I correct that the age 55 rule does not apply to a TSP withdrawal in 2023? 

[SabrinaD2]

The Rule of 55 doesn't likely apply to your TSP withdrawal in 2023. 

Key Features of the Rule of 55

1. Penalty-Free Withdrawals: Withdraw funds without the usual 10% early withdrawal penalty that applies to distributions made before age 59½.
2. Flexibility: Applies regardless of the reason for leaving your job, whether it’s retirement, career change, or other circumstances.
3. Eligibility: Only available for the TSP account tied to the job you leave at age 55 or older.
4. The Rule of 55 allows penalty-free withdrawals from your TSP if you retire or leave federal service in the year you turn 55 or later

Since you retired in 2022 and turned 55 in 2023, you do not meet the criteria for penalty-free withdrawals under this rule.