If you're ready to leave Federal service, now is the time to decide what to do with your TSP account. You can leave your account with the TSP or choose one of several withdrawal options.
If your vested account balance is $200 or more, you can leave your entire account with the TSP until the account withdrawal deadline. If you leave your account with the TSP after you separate from Federal service, you are still considered a TSP participant. You remain a TSP participant until you withdraw all of the money from your account.
Transferring Money Into Your TSP Account
Not only can you leave your money with the TSP, you can simplify your financial life by moving money from plans into your TSP account. By consolidating accounts in this way, you'll continue to enjoy the TSP's low administrative expenses and you'll still be able to change your investment mix by making interfund transfers.
For detailed information about moving money into your TSP account from an IRA or eligible employer plan, visit Rollovers and Transfers Into the TSP.
Account Withdrawal Deadline
If you decide to leave your money in the TSP, be aware that you will be required to start withdrawing your money by April 1 of the year following either:
- The year you turn age 70½, if you are separated from Federal employment or the uniformed services, or
- The year you separate from Federal service, if you have already reached age 70½.
As a helpful reminder, the TSP will notify you before your required withdrawal date and mail you important tax information about your TSP withdrawal, as well as information about the IRS required minimum distributions.
To understand your withdrawal options, visit Withdrawing Your TSP Account.