Once you leave the military, you can no longer make contributions to your military TSP account. You may, however, be able to make contributions to a different Thrift Savings Plan account if you get hired by a government agency which offers it.
What do you do with TSP after military retirement?
Options for your TSP when you leave the service
- Leave the assets in your TSP account.
- Roll your TSP account assets into an IRA.
- Roll your TSP account into your new employer’s 401(k) plan.
- Withdraw your TSP account assets in a lump sum.
- Transfer your TSP account assets to a qualified annuity.
How does TSP work when you retire?
If your vested account balance is $200 or more when you leave federal service, your TSP account stays right where it is until you need it. You can keep more of what you save thanks to our low costs. Plus, you can change your investment mix and transfer eligible money into your account.
Can a retiree get a TSP loan?
If you aren’t able to pay your loan down early, don’t worry: you can still retire with an outstanding TSP loan.
Can I cash out my military TSP?
Once you have a TSP account, you can leave your money in there until you have to take required minimum distributions. There is no requirement to move it anywhere, at any time. In fact, most military-savvy financial planners recommend that you leave your retirement funds in TSP.
Should I leave my money in TSP after I retire?
Leave it in the TSP and let it grow Depending on when you begin retirement, you can simply leave the money in the TSP let it continue to grow. If you do not need to access it yet, it might be wise to let it be. Similar to other retirement accounts, you will need to begin minimum withdrawals at age 72.
How much money should I have in my TSP when I retire?
If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.
Is the Thrift Savings Plan for the military?
Military Compensation. The Thrift Savings Plan (TSP) is a Federal Government-sponsored retirement savings and investment plan. The National Defense Authorization Act for Fiscal Year 2001 extended participation in the TSP, which was originally only for Federal civilian employees, to members of the uniformed services,…
When was Thrift Savings Plan ( TSP ) created?
The Thrift Savings Plan (TSP), a Federal Government-sponsored retirement savings and investment plan, was first established in the Federal Employees’ Retirement System Act of 1986, as a way to provide retirement income.
Where can I find information on the Thrift Savings Plan?
For more information on the TSP, visit the official TSP website at But, it’s important to remember the TSP is for long-term retirement savings. There are penalties for early withdrawals.
Is the Thrift Savings Plan the same as a 401k?
The TSP offers the same type of savings and tax benefits that many private corporations offer their employees under so-called “401 (k)” plans. The retirement income that you receive from your TSP account will depend on how much you have contributed to your account during your working years and the earnings on those contributions.
