Interest and monthly payments


Q: Monthly payments are considered a full withdrawal, but are they still in TSP and eligible to be invested in any of the accounts that are offered where interest can be accrued from them?

A: Monthly payments are taken, pro-rata, from your invested TSP funds each month. Money in your TSP account remains invested, according to your direction, until it is distributed.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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