Resources

Forms:

  • TSP-70, Request for Full Withdrawal
  • TSP-77, Request for Partial Withdrawal When Separated

Staying in the TSP

 

You can keep your money in the TSP if your account balance is $200 or more.

You'll be able to:

  • Enjoy the TSP's low administrative expenses.
  • Move money into your account from an IRA or eligible employer plan.
  • Change your investment mix with interfund transfers.
  • Leave your money in the TSP until you reach age 70½.
  • Avoid paying current Federal income taxes on any taxable amounts (and possibly penalties).

Withdrawing Your Account

 

You have many withdrawal options. You can:

  • Take just a partial withdrawal if you are eligible

OR

  • Choose one of the full withdrawal options:
    • Single payment
    • Monthly payments
    • Life annuity
    • A combination of above options

YOU MAY ALSO BE ELIGIBLE TO

  • Transfer all or part of your withdrawal to an IRA or eligible employer plan.

Tax Considerations

 

Your decision has tax consequences:

  • You will owe taxes on the taxable amount of any payment you receive from your account. The taxable amount of any lump sum payment or monthly payments lasting less than 10 years is subject to 20% Federal income tax withholding if not transferred to an IRA or eligible employer plan.
  • You may also have to pay a 10% early withdrawal penalty. However, if you are age 55 or older in the year you separate or retire, the 10% early withdrawal penalty tax does not apply.

Your To-Do List

 

There are four important things you must do: