TSP rollover


Q: I am planning to retire with 23 years of service, under the Federal Employees Retirement System. I heard from an unofficial source that a retiree can outlive his retirement under the Federal Employees Retirement System. I was of the understanding that the retirement was for life — is that not correct? Also, I have seen the response to a couple of questions in regard to rolling over Thrift Savings Plan money to outside funds. The answer has been that you “cannot move TSP money until one separates from federal service.” I am a little confused by that answer, as I have rolled 90 percent of my TSP funds to another source outside of the TSP funds, and I am still a federal employee. What’s the answer? I’m also under FERS and went to the retirement training and found out that on FERS, you only receive your annuity up to the amount that has been put in; however, CSRS folks receive their annuity until the day they die. If they are paying survivor’s benefits, their spouse would receive the annuity until death. So what is it?

A: You may roll over one in-service, age-based withdrawal while you are still working, if you qualify. Just like CSRS retirees, FERS retirees continue to receive an annuity until the day they die.

— Mike Miles


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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