Taking money from your account (2024)

There’s a lot to consider when deciding to withdraw money from your TSP account. Statistics show that people are living longer, healthier lives. It’s possible that you could spend two, maybe three, decades in retirement. The money in your TSP account plays a big role in your retirement picture. You’ll need those savings to provide you with income when you need it, so you’ll need to plan your withdrawal strategy carefully.

You’ll find an overview of some topics to consider on this webpage. Before making any decisions about taking money from your TSP account, you should review important information in the TSP publications that apply to your situation:

Distributions (371kb)—for all separated and beneficiary participants
In-Service Withdrawals (294kb)
Tax Rules about TSP Payments (437kb)

In-service withdrawals

For TSP participants who are still working for the federal government or members of the uniformed services, an in-service withdrawal can have a serious impact on your ability to accumulate enough savings to support your future goals.

Withdrawals in retirement (post-employment distributions)

For retired TSP participants, it’s important to think about your income needs and the lifestyle you’d like to have before you request a distribution.

Tax rules about TSP payments

Because tax rules are complex, you may want to speak with a tax advisor or the Internal Revenue Service (IRS) before taking money from your TSP account.

Reporting taxes

We report all TSP withdrawals and distributions to the IRS, to the appropriate state tax agencies if applicable, and to you on IRS Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Distributions from beneficiary participant accounts will be reported as death payments on IRS Form 1099-R.

Withholding taxes

In most cases, we’re required to withhold part of the taxable portion of your withdrawal or distribution for federal income tax. With certain types of payments, you may request that a different percentage be withheld or that nothing be withheld. Usually, you’ll have the option to make this request when you’re submitting your withdrawal or distribution request in My Account.

We don’t withhold for state or local income tax. This doesn’t mean that you don’t have to pay state and local taxes on your withdrawals and distributions. We report all TSP payments to your state of residence at the time of the payment (if that state has an income tax). Consult a tax advisor or state or local tax officials for specific information.

For detailed information, including a table that shows withholding rates and the rules that apply to each type of TSP payment, download the TSP booklet Tax Rules about TSP Payments (437kb).

Required minimum distributions (RMDs)

The Internal Revenue Code requires that you receive a portion of your TSP account (your “required minimum distribution” or “RMD”) beginning when you reach a specific age and are separated from service. If you are a beneficiary participant, your deadline for beginning to receive RMDs depends on whether your spouse died before or after your spouse’s required beginning date for RMD payments.

If the total amount of your withdrawals and distributions doesn’t satisfy your RMD, we’ll issue a supplemental payment for the remaining amount before the deadline each year.

RMD calculation

If you have a federal civilian or uniformed services account, your RMD calculation will only include your traditional balance, and only distributions from your traditional balance will count toward satisfying the RMD amount. Distributions of Roth money won’t count toward satisfying your RMD because Roth money in your account isn’t subject to RMDs.

If you have a beneficiary participant account, your RMD calculation will include your total account balance (traditional and Roth). Any distributions you take while subject to RMDs will count toward satisfying the RMD amount.

For detailed rules regarding RMDs see the TSP booklet Tax Rules about TSP Payments (437kb).

The first year in which you’re separated from service and have reached your applicable age or older is called your first distribution calendar year. If you don’t receive enough money from your account to meet your RMD during your first distribution calendar year, we’re required to disburse your first RMD to you by April 1 of the following year. That date is called your required beginning date.

Use this table to find your applicable age and required beginning date:
Participant's Date of Birth	Applicable Age	Employment Status as of 12/31/2022	Required Begininng Date
Before January 1, 1951	Has already passed
		Separated	Has already passed
		Active	April 1 of the year after separation
January 1, 1951 - December 31, 1951	73
		Separated	April 1, 2025
		Active	April 1 of the year after separation
January 1, 1952 - December 31, 1959	73
		Separated	April 1 of the year after participant is both separated and at least 73
		Active
December 31, 1959	75
		Separated	April 1 of the year after participant is both separated and at least 75
		Active

Traditional, Roth, or both

If you have both traditional and Roth money in your account and are leaving some money in your account, you can specify that your withdrawal or distribution should come only from your traditional money, only from your Roth money, or pro rata. Pro rata means the withdrawal or distribution will have the same percentages of Roth and traditional as are in your account.

Rollover eligibility

You may be able to roll over all or part of eligible withdrawals and distributions to a traditional IRA, a Roth IRA, or an eligible employer plan. Any tax-deferred amounts that are rolled over will retain their tax-deferred status until they’re distributed.

Receiving your TSP payment

You can log in to My Account or contact the ThriftLine to find out the status of your withdrawal. Once your withdrawal has been disbursed, you cannot return it.

We disburse partial and total withdrawal and distribution payments each business day. For participants who are separated from service and requesting installments, after the start date of an installment, we’ll issue subsequent installments on the 15th (or next business day) of the month they’re due. Please allow a few days for payment processing.

Any payments that are not sent directly to an IRA or an eligible employer plan can be sent to your checking or savings account electronically by direct deposit. Otherwise, we’ll mail a check to the preferred address on your account.

For your protection, the destination you wish to send your TSP payment must be on file for at least seven days before it can receive funds. This includes any postal address or any direct deposit information you’ve entered. Make sure this information is on file for at least seven days before you start your request. Lost, stolen, damaged, or misdirected checks can take six weeks or longer to replace.

Account holds

Some situations may cause a hold on your account. You cannot request a withdrawal or distribution until the matter that caused the hold is settled and the hold is removed from your account. However, any required minimum distributions (RMDs) will be disbursed by the appropriate deadline.

- A court order that awards all or part of a TSP account to a current or former spouse (including a separated spouse).
- A legal process that enforces obligations to pay child support or alimony, or to satisfy judgments for child abuse.
- A federal tax levy.
- A criminal restitution order pursuant to the Mandatory Victims Restitution Act (MVRA).
- A hold we place on your account because of suspected fraud.
- A hold we place on your account for administrative reasons such as account corrections or adjustments.
For more information about court orders, visit the Court Order Center.

In addition to the account holds described, you may voluntarily place a lock on your account to protect it. When you do so, you’ll be asked to set an unlock key. You’ll need to use the unlock key before requesting a withdrawal or distribution.

Vesting

Vesting requirements only apply to FERS and BRS participants.

FERS and BRS participants must work for a certain number of years to be entitled to, or vested in, the Agency/Service Automatic (1%) Contributions in their account and the earnings on them. If you have not met the vesting requirement by the time you leave service, any Agency/Service Automatic (1%) Contributions and the earnings on them will be removed from your account and forfeited to the TSP.

Important: Civilian service does not count toward vesting in a uniformed services account, and uniformed service does not count toward vesting in a civilian account.

Spouses’ rights

By law, your spouse has certain rights to your TSP account. These rules apply even if you’re separated from, but still married to, your spouse. Spouses’ rights apply to withdrawals made during and after federal employment. These rules apply to both in-service withdrawals and post-employment distributions.

- If you’re a married FERS or uniformed services participant and you’re making a partial withdrawal, your spouse must give written consent on your withdrawal form regardless of your account balance or the amount of your withdrawal. Your spouse’s signature must be notarized.
- If you’re a married CSRS participant and you are making a partial withdrawal, we must notify your spouse in writing regardless of your account balance or the amount of your withdrawal.
- If you’re a married FERS or uniformed services participant with a total TSP account balance of more than $3,500 and you’re requesting a total withdrawal or distribution, your spouse is entitled by law to a joint life annuity with:
  - a 50% survivor benefit,
  - level payments, and
  - the no cash refund feature.
- If you choose any other withdrawal or distribution option or combination of options where your entire account balance is not used to purchase this particular type of annuity, your spouse must sign the statement on your request form that waives his or her right to that annuity. Your spouse’s signature must be notarized.
- If you’re a married CSRS participant with a total TSP account balance of more than $3,500 and you’re requesting a total withdrawal or distribution, we must notify your spouse in writing of your withdrawal or distribution election.
- If you’re a married CSRS participant and you move your civilian account into your uniformed services account, your spouse gains additional rights because he or she must sign a waiver of consent when you want to withdraw from your account.
- If you’re a married CSRS participant and you move your uniformed services account into your civilian account, you must get your spouse’s consent to do so, and we will only notify them of your withdrawal or distribution.