How to Take Withdrawals Under the TSP Rule of 55 Once you qualify under the TSP Rule of 55, you can take withdrawals without penalty. However, those withdrawals are still taxable income. You can choose from installment payments, partial lump sums, or full withdrawals—each with different impacts. TSP Rule of 55 withdrawal rules allow flexibility, but you must make informed choices to ... https://www.federalpensionadvisors.com/post/tsp-rule-of-55