TSP Withdrawals and Distributions

June 30, 2023

Withdrawals and Distributions

The procedure for requesting a distribution or withdrawal is now faster and easier:

  • We have made it possible to use electronic signatures and submit many requests entirely online, as we have done with other transactions.
  • You can likewise accept your cash as immediate store to your ledger or with a money order. The mailing of a check is the default method of payment.
  • You can select a start date for installments within six months of your request if you request a distribution in installments. After the beginning date, we’ll give resulting portions on the fifteenth (or next work day) of the month they’re expected. Please permit several days for processing.
  • Even if you do not specifically request to receive the amount of your required minimum distribution (RMD), you can still opt to receive RMDs electronically by including direct deposit information in My Account.

For more help and information visit our main TSP page.

Furthermore, there are a few different changes to withdrawals and disseminations you really want to be aware Withdrawals and distributions:

  • You will be able to roll over the entire installment or specify a dollar amount for a partial rollover if you make a distribution request for installments from your traditional or Roth balance and want to transfer the money to an IRA or eligible account. You will need to request this through the ThriftLine if you want to specify a dollar amount for the rollover.
  • On the off chance that you demand a monetary difficulty withdrawal and have adequate assets accessible, you’ll have the option to expand your withdrawal to 125% of the monetary need to cover charge hold back.
  • In the event that you start getting portions in view of future before you arrive at RMD age (as of now 72), we work out your installment sum utilizing the Single Future Table. At the point when you arrive at the RMD age, you’ll have the choice every January to demand that we start utilizing the Uniform Lifetime Table all things being equal. In the event that you in all actuality do pursue this decision, you will not have the option to switch back. We must use the Uniform Lifetime Table if you begin receiving life expectancy installments after reaching the RMD age.

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