When you separate from service, you can leave your entire account balance in the TSP if it is $200 or more. You will be required to begin a full withdrawal election no later than April 1 of the year after the year you turn age 70 ˝. If your vested account balance is less than $200, your balance will be automatically paid to you in a single payment. You will not be eligible to make any other withdrawal election and your participation in the TSP will end. If your account balance is less than $5.00 when you leave service, the TSP will automatically forfeit the balance to the Plan.
There are a number of ways you may make withdrawals. You can choose:
Withdrawing Your TSP Account After Leaving Federal Service [655 KB]
Request for Full Withdrawal [155 KB] (Do not submit until 31 days after separation)
Request for Partial Withdrawal When Separated [156 KB]
Exception to Spousal Requirements [240 KB]
TSP withdrawal payments are subject to Federal income tax when they are paid directly to you. Certain types of payments may be transferred to a traditional IRA or other eligible employer plan and retain their tax-deferred status. You can also transfer certain withdrawal payments to a Roth IRA, but you will have to pay taxes on the transfer for the year in which the transfer is made.
If you receive a TSP withdrawal payment before you reach age 59˝, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10% of any portion of the payment not transferred or rolled over. However, if you are age 55 or older in the year you separate or retire, the 10% early withdrawal penalty tax does not apply.
Designation of Beneficiary [487 KB]
Information Relating to Deceased Participant [203 KB]
Death Benefits Information for Participants and Beneficiaries [371 KB]
Important Tax Information About Thrift Savings Plan Death Benefit Payments [237 KB]
For more information visit the TSP website at www.tsp.gov or call the ThriftLine at 1-877-968-3778 TDD 1-877-847-4385.