You have a lot to think about as you prepare to go on active duty. Whether you are a Federal or non-Federal civilian employee, if you take the actions described here, you can minimize problems that may arise regarding your TSP
Be sure to immediately inform your Federal civilian agency that you have been called to perform active military service.
Be aware that your payroll contributions to your civilian TSP account (and Agency Contributions, if you are FERS) will stop once you go into a nonpay status.
However, you can still contribute to your uniformed services account. It is a good idea to contribute a percentage of your basic pay, which entitles you to contribute a percentage of any incentive pay, special pay, or bonus pay.
TSP Uniformed Services Account
If you do not yet have a uniformed services account, you may want to establish one by submitting Form TSP-U-1, Election Form, to your service, or by using your service's electronic version of the form.
Be aware that, if you have a TSP loan from your civilian TSP account, your loan payments will stop, because they come from payroll deductions. Also, you cannot make payments on that loan from your uniformed services pay. However, you can continue to make loan payments by sending a personal check or money order to the TSP along with a TSP Loan Payment Coupon.
Ask your Federal civilian agency to submit Form TSP-41, Notification to TSP of Nonpay Status. Submission of this form will suspend your loan payments until you return to your Federal civilian job. However, there are other acceptable forms of documentation to notify the TSP.
Confirm how much you have contributed to your employer's defined contribution plan (e.g., 401(k), 403(a), 403(b), etc.) for the current tax year. If you intend to contribute from your uniformed services pay, this will help you determine the amount (in tax-deferred contributions) that you will be eligible to contribute to your uniformed services TSP account while on active duty.
Remember the Basics
- Make sure the TSP has your current mailing address. If necessary, ask your agency and/or your service to correct or change your mailing address for your TSP account.
- Be sure you have your TSP account number (or user ID), your Web password, and ThriftLine PIN. If you have lost or forgotten these numbers, you can request your account number be mailed to you, which you can then use to create a new user ID.
- Acquaint yourself with TSP contribution limits.
Decide Whether to Designate a Power of Attorney
You can designate a power of attorney - an individual to serve as your agent in any business with the TSP. Your agent can be given very specific powers or unlimited power to act on your behalf. You can use the Special Power of Attorney form to designate a power of attorney.
Review any beneficiary designations you have on file with the TSP. Update or change information, if necessary. No other types of designations (such as wills) are accepted by the TSP.
If you have no beneficiary designation on file with the TSP, be aware that your TSP