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 Please Call the ThriftLine at 1 877 968 3778 to Request Form TSP 70 a 2012

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assets and opportunity invest in your future how much is tsp taxed for early withdrawal the Thrift Savings Plan or tsp is a retirement savings plan for federal employees and members of the uniform services understanding the tax implications of early withdrawal is crucial for Effective financial planning when you withdraw funds from your tsp before reaching the age of 59 a half the withdrawal is generally subject to federal income tax this means that the amount you withdraw will be added to your taxable income for that year in addition to federal income tax an early withdrawal May incur a 10% penalty this penalty is designed to discourage individuals from accessing retirement funds prematurely certain exceptions exist such as disability or significant medical expenses which may allow for penalty-free withdrawals it is important to note that state taxes may also apply depending on your state of residence each state has its own tax regulations which can further impact the total tax burden

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