Q. My husband and I are both FERS with law enforcement coverage. He is 52 years old but will be retiring soon because of terminal illness. He has a total of 31 years of federal time. I am 45 years old and just completed my 25th year of federal LEO coverage. I have no plans of retiring anytime soon.
My husband will most likely dip into his TSP upon retirement. He has made me his beneficiary of his TSP. Whatever money is left in his TSP after he passes, how does that affect my beneficiary status? Does his TSP remain in a TSP account? Do I need to roll it over to an IRA? What are my options?
A. As a spouse beneficiary, you will have the option of combining the proceeds into your own TSP account, rolling the money over to a beneficiary IRA account or withdrawing the funds.