Q. Say I have $100,000 in my TSP account when I retire. I decide to choose monthly payments for the entire $100,000 at a monthly rate of $500 a month. Does the $99,500 that is left in the TSP after the first month’s payment continue to earn interest, or is that $100,000 value locked into “stone” and I will never earn another nickel on the money that is sitting there (i.e., after 200 monthly payments my TSP funds will be gone). I understand that once a year I can adjust the monthly payment amount. Assuming that I still do earn interest, can I also put that money into the different funds (e.g., G fund, C fund) like I can while I am still working?
A. Everything works just like it did while you were working.