The TSP Rule of 55 is an important provision for federal employees considering early retirement. This rule allows individuals who separate from federal service in the year they turn 55 or later to withdraw from their Thrift Savings Plan (TSP) without the 10% early withdrawal penalty. This article explains the eligibility requirements, advantages, and potential drawbacks of utilizing this rule. By understanding how it works, federal employees can better plan for retirement and make strategic financial decisions to secure their future.