The TSP Rule of 55 provides a valuable option for federal employees who want to access their Thrift Savings Plan (TSP) without penalties before the traditional retirement age. If an employee separates from federal service in the year they turn 55 or later, they can withdraw funds without incurring the standard 10% early withdrawal fee. This article explains the details of this rule, including how it works, eligibility requirements, and important planning considerations. Understanding this rule can help employees make informed retirement decisions.