#rbi #specialprovisions #fersretirement Some federal employees have very demanding jobs, such as law enforcement officers (LEO), firefighters (FF), and air traffic controllers (ATC), that may be covered under FERS Special Provisions. They are given this designation since they are allowed to retire earlier than other FERS employees without suffering penalties to their federal benefits. Special Provisions employees become eligible for federal retirement at age 50, with at least 20 years of Special Provisions service, or at any age with at least 25 years of service; at least 20 years of which must be Special Provisions service.

Retirement Benefits Institute has trained thousands of federal employees as they make plans for federal retirement. For more information about your federal retirement benefits, go to our website at to get support.

The information contained in this video should not be used in any actual transaction without the advice and guidance of a tax or financial professional who is familiar with all the relevant facts. The information contained here is general in nature and is not intended as legal, tax or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for the individuals’ specific circumstances or needs and may require consideration of other matters. RBI is not a broker-dealer, investment advisory firm, insurance company, or agency and does not provide investment or insurance-related advice or recommendations. Brandon Christy, President of RBI, is also president of Christy Capital Management, Inc. (CCM), a registered investment advisor….(read more)

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The Thrift Savings Plan (TSP) is a government-sponsored retirement savings and investment program that is available to federal employees. Some federal employees, such as those in the military, law enforcement, and firefighters, are considered Special Provisions Employees (SPEs). These employees have special rules governing their TSP accounts, including the ability to take early withdrawals without incurring the usual 10% early withdrawal penalty.

If you are an SPE and you need to withdraw money from your TSP account before you reach the age of 59 ½, there are several ways you can do so without being penalized. The first is if you retire from federal service during or after the year you turn 50. In this case, you can withdraw from your TSP account penalty-free, as long as you have separated from federal service.

Another way SPEs can withdraw early from their TSP account is if they qualify for what is known as the “age-based in-service withdrawal”. This option is available to SPEs who are at least 59 ½ years old and still employed by the federal government. If you qualify, you can take a one-time partial withdrawal or a series of monthly payments from your TSP account, without incurring the usual early withdrawal penalty.

SPEs who are also facing financial hardship may be eligible for what is known as a “financial hardship in-service withdrawal”. To qualify for this type of withdrawal, you must demonstrate that you have an immediate and significant financial need, such as medical expenses, funeral expenses, or home-related expenses. You must also show that you have no other resources available to meet the need. If you qualify for a financial hardship in-service withdrawal, you can withdraw up to $50,000 from your TSP account, penalty-free.

Finally, if you are an SPE and you are leaving federal service due to a “voluntary separation incentive payment” (VSIP), you can withdraw from your TSP account penalty-free. A VSIP is a lump sum payment designed to encourage SPEs to voluntarily leave their federal positions.

While being able to withdraw from your TSP account penalty-free may seem like a good option, it is important to remember that these withdrawals do come with tax consequences. Any money withdrawn from your TSP account will be subject to federal income tax, and possibly state income tax as well. In addition, early withdrawals will reduce the amount of money available for your retirement, so it is important to carefully consider whether withdrawing early from your TSP account is the best option for your financial situation.

In summary, if you are a Special Provisions Employee and need to withdraw from your TSP account early, there are several options available to you that will allow you to do so without incurring the usual 10% early withdrawal penalty. However, it is important to carefully consider the financial consequences of any early withdrawal and to seek advice from a financial professional if you are unsure about what to do.