The TSP Rule of 55 is a key financial provision that allows federal employees to withdraw from their Thrift Savings Plan (TSP) without facing the usual 10% early withdrawal penalty. To qualify, an employee must leave federal service in the year they turn 55 or later. This article discusses how the rule works, the benefits it offers, and important factors to consider before making withdrawals. Understanding this rule can help federal employees maximize their retirement savings and plan effectively for the future.