TSP withdrawal before return to employment


Q. Recently I separated from federal service, but I was rehired before 31 days of separation had passed. While I was separated, I decided to withdraw all of my TSP. I didn’t realize at the time that I would be “ineligible” until I had been separated for 31 days and TSP approved my withdrawal request and gave me my money (after taking out the appropriate amount for federal taxes). Can TSP force me to put all my money back into my TSP account since I was rehired before I had a complete 31 days of separation even though they had approved my withdrawal request, taken out money for federal taxes, and then gave me the rest of my TSP funds?

A. They will not force you to return the money.


About Author

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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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