Do You Have a Traditional and a Roth balance?
If you have both a traditional and a Roth balance in your TSP account, your withdrawal will be paid proportionally from your traditional and Roth balances for each withdrawal option that you choose. If you have tax-exempt money in your traditional balance, your withdrawal will be paid proportionally from taxable and nontaxable amounts.

As a beneficiary participant, you can leave your money with the TSP or take your money out of your beneficiary participant account at any time. You also have the flexibility to tailor your withdrawal decisions to your personal needs.

There are two types of withdrawals you can make:

  • A partial withdrawal
  • A full withdrawal

Partial withdrawal. With this withdrawal, you can take out $1,000 or more and leave the rest in your account until you decide to withdraw it at a later date. You may only make one partial withdrawal from your account.

Full withdrawal. With this withdrawal, you can designate your entire account for immediate withdrawal using one, or any combination of these three withdrawal options available to you:

  • A single payment
  • A series of monthly payments
  • A life annuity

A single payment allows you to withdraw your entire beneficiary participant account at one time in one payment. It is sometimes referred to as a "lump sum."

Monthly payments allow you to withdraw your entire account in a series of payments. You can ask for a specific dollar amount each month or you can have the TSP calculate a monthly payment based on your life expectancy. If you choose a specific dollar amount, it must be at least $25.

An annuity pays a benefit to you (or, in certain cases, your survivor) every month for life. The TSP purchases the annuity on your behalf from a private insurance company. You can have the TSP purchase an annuity with all or any portion of your account balance when you request a full withdrawal. An annuity can be purchased for $3,500 or more. Once an annuity is purchased, it cannot be changed.

You can also make a mixed withdrawal which allows you to combine any or all of the three withdrawal options (single payment, monthly payments, or annuity). However, if you request a mixed withdrawal with an annuity, the portion of your account balance used to purchase the annuity cannot equal a dollar amount of less than $3,500.