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If you’ve separated from the Federal Government or the uniformed services and have decided to leave your money in the TSP, there are a few things to keep in mind.

Limitations on Leaving Your Money in the TSP

There are significant benefits to leaving your money in the TSP including very low administrative expenses, multiple investment options, the ability to transfer funds from IRAs or eligible employer plans to your TSP account, and continued tax deferral on traditional contributions and their earnings. However, you should be aware of the TSP rules that apply to you while you are in retirement.

Deadline to Start Withdrawing Your TSP Account

If you are separated from Federal service or the uniformed services, you will be required to start withdrawing your money by April 1 of the year following the year you turn age 70.

For example, if you are age 45 and separate from service this year you would be required to begin a full withdrawal election from your TSP account no later than April 1 of the year after the year you turn age 70.

If you are not separated from Federal service or the uniformed services when you reach age 70, you may continue to contribute to the TSP and you will be required to start withdrawing your money by April 1 of the year following the year you separate from Federal service or the uniformed services.

For example, if you are age 74 and separate from service on December 31 of this year, you would be required to begin a full withdrawal election from your TSP account no later than April 1 of next year.

For more information about the withdrawal deadline as well as the consequences of missing the deadline, visit Account Withdrawal Deadline .

Required Minimum Distribution (RMD) Rules

In addition to the TSP withdrawal deadline, the Internal Revenue Service (IRS) requires that you receive a certain portion of your account each year based on your life expectancy. The TSP will notify you before your required withdrawal date and mail you important tax information about your TSP withdrawal along with information about the IRS minimum distribution requirements. You can find more detailed information about RMDs by visiting Required Minimum Distributions .

Contributions, Loans, In-Service Withdrawals, and Court Orders

While in retirement from Government service, you can no longer make contributions to your TSP account, take out TSP loans, or request in-service withdrawals. Also, all court orders against your TSP account must be resolved before you can make a withdrawal.