TSP interest


Q. I will have 41 years and 11 months government service in October of 2016. I am in the CSRS. I plan on retiring Jan. 3, 2017.  It is my understanding that the time period between October and January that retirement will be taken from my pay, but no more contribution from the government. It is also my understanding that this deduction will be placed into an account that pays 3 percent interest. My questions are, can I leave this money in the account and continue to earn 3 percent after retirement? Can I add to this account before retirement? Can I possibly deposit my Thrift savings in said account at the time of  my retirement and continue to earn 3 percent?  Or will the government close the account and send me a check of the remaining  amount of the account, plus interest?

A. You may not divert CSRS withholding into your TSP account. These contributions to CSRS are made with after-tax money and the TSP will only accept pre-tax 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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