Resources

Forms:

  • TSP-75, Age-Based In-Service Withdrawal Request

Are you vested?
If you are a CSRS employee or a member of the uniformed services, you are always 100% vested in your own contributions and earnings. If you are a FERS employee, you are immediately vested in your own contributions and Agency Matching Contributions, as well as the earnings on those contributions. However, vesting in your Agency Automatic (1%) Contributions and earnings depends on your years of service. For more information, visit "A few words about vesting."
Reporting Distributions to IRS
In January following the year of distribution, the TSP reports all TSP distributions to the Internal Revenue Service—and to you—on IRS Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. such a transfer.
Proportional Distributions
Withdrawals are paid proportionally from your traditional and Roth balances, and from each TSP fund in which you have investments. If you are a uniformed services member with tax-exempt contributions in your traditional balance, your withdrawal will contain a proportional amount of tax-exempt contributions as well.
Is your address up-to-date?
Be sure that your agency or service has your current mailing address and provides it to the TSP before you submit your in-service withdrawal form.

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

 

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.
The TSP determines your age based on the date of birth reported by your employing agency or service. If that date is incorrect, you must ask your agency or service to change it.

Consequences of Age-Based Withdrawals

 

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.


Tax Considerations

 

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.

You may be able to transfer or roll over all or a part of your age-based withdrawal to a traditional IRA, a Roth IRA, or an eligible employer plan. However, your eligibility to transfer or roll over, as well as how taxes are applied, depends on the type of money contained in your withdrawal (traditional or Roth) and the type of account that will receive your transfer or rollover. Depending on the type of plan you move your money into, the funds you transfer or roll over may become subject to plan rules different from those that govern the TSP.

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".

Applying for an Age-Based Withdrawal

 

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.

Paper Request

Complete 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.

If you have a pending application for another in-service withdrawal or for a TSP loan at the time your age-based withdrawal request is received, your request will not be accepted. Only one request for an in-service withdrawal or a loan is permitted at a time.

Receiving Your Age-Based Withdrawal

 

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.

If you complete your request online, you will not have the option of receiving an electronic deposit of your funds or transferring any part of your withdrawal to an 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.

To find out the status of your age-based withdrawal, visit My Account: Withdrawals or call the ThriftLine. The TSP will also notify you in writing when your request has been processed.