Early Withdrawal Due to Disability
I’m a T32 military technician (43 m). I’m looking at a medical retirement within the next 6 months. Most likely will lose my federal position and be granted federal disability (60/40). I’m 100% through the VA. I have $200k+ in my TSP. I have a family, mortgage, everything that comes with life. I’m looking into early withdrawal of my TSP because my condition will probably diminish my lifespan and I’d rather pay down my debt and use my money to enjoy my life now while I’m able. I know there are taxes and I’m fine with that, but I’m reading that you can get around the 10% penalty for withdrawing if you are disabled. Do I have a shot at that? I’m not disabled to the point I can’t do gainful employment. However my mental health isn’t going to allow me to do a medial job with little purpose or punch a clock after everything I’ve been through. What do I need to do to get around the 10% penalty. Appreciate everyone that has advice!