You can make an age-based in-service withdrawal anytime after you reach age 59½ as long as you are an active civilian Federal employee or a member of the uniformed services.
- Eligibility Rules
- Consequences of Age-Based Withdrawals
- Tax Considerations
- Applying for an Age-Based Withdrawal
- Receiving Your Age-Based Withdrawal
The following rules apply for age-based withdrawals:
- You can only withdraw funds in which you are vested (i.e., entitled to keep) based on your years of service.
- The amount of your age-based withdrawals must be at least $1,000 or your entire vested account balance (even if it's less than $1,000).
- You may only take one age-based withdrawal during the time you are actively employed in Federal service or as a member of the uniformed services. If you have two separate TSP accounts — a civilian TSP account and a uniformed services account — you can only make an age-based withdrawal from the account associated with your active employment at the time of your withdrawal. However, if both of your accounts are associated with your active employment, you can make an age-based withdrawal from each account.
Your age-based withdrawal is subject to Federal income tax and, in some cases, state income tax. Any tax-exempt or Roth contributions included in your withdrawal are not subject to Federal income tax; neither are any qualified Roth earnings.
If you make an age-based withdrawal, you will not be eligible to receive a partial withdrawal from the same account after you separate from service.
Age-based withdrawal payments are considered eligible rollover distributions for Federal income tax purposes and are subject to mandatory 20% Federal income tax withholding. You may increase your withholding but you may not decrease or waive it.
For more detailed information about the tax rules affecting in-service withdrawals, read the tax notice, "Important Tax Information About Payments From Your TSP Account".
You can apply for an age-based withdrawal in one of two ways.
Online by Logging into My Account
Begin your Age-Based In-Service Withdrawal Request by going to My Account: Withdrawals. You can begin and, in some cases, complete your request online. It depends on whether you are required to obtain your spouse's signed consent waiver and whether you want to receive your money by check or by direct deposit to your bank account.
Complete Form TSP-75, Age-Based In-Service Withdrawal Request and mail or fax it to the TSP. The form is available on this website, through the ThriftLine, or from your agency or service.
Your age-based withdrawal check will be mailed to the address in your TSP account record. However, if you are making a paper withdrawal request, you may request to have your withdrawal payment electronically deposited into your checking or savings account. If you are transferring any portion of your age-based withdrawal, the TSP will mail the check to your IRA or eligible employer plan.
It will take several weeks from the time the TSP receives your properly completed form until the time it sends your check.