If your Thrift Savings Plan account balance is $200 or more when you separate

from service, you can leave your money in the TSP or you can request to withdraw

your entire account in either:

• a single payment,

• monthly payments,

• or for amounts of $3,500 or more, a life annuity. 

You may withdraw your account by using any one or any combination of these

withdrawal options.  For example, you might withdraw your entire account in

monthly payments, or you might take half of your account as a single payment and

half of your account as an annuity. 

If you choose to withdraw your account in a single payment, your entire

balance is paid at one time.  You can have the TSP transfer all or part of

any single payment to a traditional IRA or eligible employer plan. 

If you choose to withdraw your account in monthly payments, you must also

choose whether you want the TSP to compute your payments based on

• the IRS life expectancy table, or

• whether you would like to receive a specific dollar amount each month. 

If you choose to receive a specific dollar amount each

month, you may be able to transfer all or part of your payments to an

IRA or other eligible employer plan.  This will depend on the number of

payments you are expecting to receive. 

If you choose to withdraw your account in the form of an

annuity, you can have the TSP purchase a single life annuity for you, a

joint life annuity with your spouse, or a joint life annuity with someone other

than your spouse.  You cannot request an annuity with an amount less than

$3,500.  If you elect an annuity, you must also choose among several

annuity features that are available (e.g., a 50 percent or 100 percent survivor

benefit, or a cash refund or "10-year certain" feature.)   Not all

features are available for each type of annuity. 

If you choose to withdraw your account as a mixed withdrawal

(i.e., any combination of the full withdrawal options), the rules for each

withdrawal option will still apply.  Tax withholding rules differ for each

option.  For example, if you make a mixed withdrawal and you choose to

purchase an annuity with a portion of your account, no taxes will be withheld,

but annuity payments will be taxed as they are made.  If you choose monthly

payments, the tax withholding rules that apply to your monthly payments will

differ depending on whether your payments are based on life expectancy are

expected to last less than 10 years or 10 or more years.  If you elect to

transfer all or part of your single payment and your monthly payments, the

transfers must be to the same traditional IRA or eligible employer plan. 

If your account balance is less than $200 when you separate, the TSP will

send you a check for your account balance.  Spouses' rights will apply to

all full withdrawals of more than $3,500.