In-service withdrawal basics
In-service withdrawals are withdrawals you make from your TSP account while you’re still working for the federal government or a member of the uniformed services. An in-service withdrawal can have a serious impact on your TSP account. Remember that the purpose of your account is to accumulate savings so that you’ll have income during retirement.
Things to consider:
- Withdrawals permanently reduce your retirement savings as well as any earnings you would’ve earned.
- Withdrawals may be subject to income taxes or other penalties.
- If you’re a married FERS participant or a member of the uniformed services, your spouse must sign a consent waiver for your in-service withdrawal.