You are allowed to keep your beneficiary participant account as long as you like. With the exception of required minimum distributions you can keep your money invested in this account without making withdrawals. But if you do decide to take money out, you have a number of options.

There are three basic methods of withdrawing money from your beneficiary participant account:

  • TSP installment payments (a fixed dollar amount or one based on life expectancy)
  • single withdrawals ($1,000 minimum)
  • annuities (purchased for you from our annuity vendor; $3,500 minimum)

You can choose any of these options or any combination of them.

In addition, if you have both Roth and traditional money in your account, you can choose to have your payment come from your traditional balance only, from your Roth balance only, or pro rata (proportionally) from both balances. Pro rata from both balances is the default option. Note that if you choose traditional only or Roth only for installments, your payments will continue after your chosen balance runs out. At that point your payments will begin coming from the balance you did not choose.

For single withdrawals and fixed-dollar-amount TSP installment payments expected to last less than 10 years, you can also transfer payments to an IRA or eligible employer plan.