Who Should Use the TSP Rule of 55? The TSP Rule of 55 is most beneficial for federal employees planning to retire between ages 55 and 59½. If you need income during those years, this rule can help you avoid early withdrawal penalties. TSP Rule of 55 withdrawal rules make this benefit specific—you must retire in the year you turn 55 or later, and your funds must stay in your TSP. The ... https://www.federalpensionadvisors.com/post/tsp-rule-of-55