What Happens if You Leave Money in the TSP After Separation

At some point in the future, you will separate from federal service. After you separate you will be able to withdraw money from your Thrift Savings Plan account. The TSP doesn’t care why you separated, it might be due to retirement, or you may choose to resign prior to becoming eligible for retirement. Regardless of the reason for your separation, don’t expect immediate access to your funds; you must clear the payroll system first. It usually takes around thirty days before the TSP is even aware that you have left federal service.
Many separated employees will choose to roll (transfer) their funds into an outside IRA or other tax deferred account. But you can also leave your funds in the TSP if you want (the Thrift Board encourages you to not transfer your funds out of the TSP). The rest of this article will discuss what happens if you leave your money with the TSP. Please click HERE to read more.