The TSP Rule of 55 enables federal employees to access their Thrift Savings Plan (TSP) funds penalty-free if they separate from service during or after the year they turn 55. This exception to the 10% early withdrawal penalty offers flexibility for early retirees or those transitioning careers. While penalties are waived, regular income taxes still apply to withdrawals. This rule only... https://www.federalpensionadvisors.com/post/fehb-plans-2025