Required Reading
Be sure to carefully read the TSP tax notice, "Tax Information for TSP Participants Receiving Monthly Payments". It outlines the rules for changing your monthly payments and details the tax implications associated with each monthly payment option.
Eligible Rollover Distribution
If your TSP monthly payments are expected to last less than 10 years and are not based on the IRS life expectancy table, they are eligible to be transferred or rolled over to your IRA or other eligible employer plan. Otherwise, the IRS considers them periodic payments and not eligible for transfer or rollover.

Once your withdrawal request is processed, you cannot return your withdrawal or change your withdrawal options. However, if you have chosen to receive part or all of your account in a series of TSP monthly payments, you do have options for changing and managing those payments.


Changing Your Monthly Payment Amount

 

Use Form TSP-73, Change in Monthly Payment Amount, to do any of the following:

  • Change the monthly dollar amount you are receiving. You may do this once a year. Your request will become effective the following January.

Or

  • Change your TSP-computed payments (based on life expectancy) to a specific dollar amount. This is a one-time-only change. Your request will become effective the following January.

Managing Your Monthly Payments

 

Use Form TSP-78, Monthly Payments Maintenance, to make the following immediate changes in the way your monthly payments are handled:

  • Start the direct deposit of your payments.
  • Change the financial institution or the checking or savings account that is receiving your monthly payments.
  • Stop direct deposit and have your monthly payment sent to you in the mail.
  • Change the standard Federal tax withholding for your monthly payments.
  • Begin or stop transferring monthly payments to an IRA or eligible employer plan.
  • Change the portion of each monthly payment that is transferred to an IRA or eligible employer plan.
  • Change the IRA or eligible employer plan to which your payments are sent.
If you have chosen an annuity, you cannot change either the annuity option or your choice of joint annuitant after the TSP has purchased the annuity for you. For more information, visit Annuities.

Requesting a Final Single Payment

 

Use Form TSP-79, Change From Monthly Payments to Final Payment, if you are receiving TSP monthly payments and you want to request a final single payment from your TSP account.

Your request for a final single payment will close your TSP account.