Q: I am retired and have not withdrawn money from my TSP as of yet. It is my understanding that if I should die tomorrow, my spouse would inherit the full amount of my TSP. But when I looked into beginning monthly withdrawals from my TSP, it seemed to say that I had to buy an annuity with my spouse being the beneficiary of 50 percent in the event of my death. Why would my spouse not inherit the full amount?
A: You don’t have to buy an annuity to initiate monthly payments from your account. Use Form TSP-70 to request automatic monthly payments (not an annuity) and your spouse will inherit the balance following your death.