Thrift Savings Withdrawal Options After Leaving Federal Service
What do I need to know before making a withdrawal from my TSP account?
You are eligible to withdraw your account when you separate from federal
service. You can also leave all or a portion of your account in the TSP
and withdraw it later. However, there are limits on how long you can leave
your money in the TSP.
When you leave federal service, your agency should give you information about
your TSP withdrawal options.
Because the tax rules that apply to each of the withdrawal options are
complex and may differ depending on the option(s) you choose, you should also
read the tax notice "Important Tax Information About Payments From Your TSP
Account."
Thrfit Savings Plan withdrawal options
The TSP provides several ways to withdraw your account:
- You can make a partial withdrawal of your account in a single payment.
- You can make a full withdrawal of your account using any one, or any
combination, of the following methods:
- A single payment
- A series of monthly payments
- A life annuity
A combination of any of the above three full withdrawal options is called a
"mixed withdrawal."
You can have the TSP transfer all or part of any single payment or, in some
cases, a series of monthly payments, to a traditional IRA or eligible employer
plan. If you submit a paper form to make your withdrawal request, payments
to you can be deposited directly into your checking or savings account by means
of electronic funds transfer (EFT).
Note: If you are a FERS employee and you have not met the TSP vesting
requirements when you leave federal service, you are not entitled to the agency
automatic (1%) contributions in your TSP account (or their earnings). This
money will be forfeited to the TSP.
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