Returning from deployment or TDY
If you’re a uniformed services member returning from deployment or TDY, there are a few things you need to know.
Your account contributions
Ensure your TSP contributions are being deducted from your pay the way you prefer. This means if you were receiving tax-free pay, such as combat zone or hazardous duty pay, while deployed or on TDY, you may consider adjusting your contributions upon return to your regular pay.
When you contribute that pay to Roth TSP (after-tax), the earnings from your pay will also be tax-exempt when you withdraw them. However, you will still have to meet the current IRC maximum elective deferral limits.
Updating your beneficiary designation
If you’ve had any change in your personal situation that warrants changing your beneficiary designation, be sure to complete a new Form TSP-3, Designation of Beneficiary. Remember that the TSP will not honor any other document for the distribution of your TSP account after your death. If you do not have a Designation of Beneficiary form on file with the TSP, your money will be distributed according to the legal order of precedence. Read Returning to uniformed service about what you should do and consider regarding your TSP account.