Q. I am a federal civilian under the FERS system with less than 10 years of civil service. I am also a military reservist with 25 years of military service. I am not yet 50 years old and I do not intend to retire or separate from federal service in the next few years. I want to cease contribution to and close my TSP account, withdraw the entire amount immediately by rolling it over into a tradional IRA not associated with the government. I am unconcerned about any penalty I may have to pay. I could not find in any of the TSP literature or website how I could do this. Could you assist me?
A. This is not permitted under the circumstances you describe.
1 Comment
TSP Pub “Withdrawing your TSP Account” > page 7 > “If your break in service is 31 or more full calendar days, you are eligible, but not required, to withdraw your TSP account. If you wish to withdraw your account, your withdrawal request must be received and paid while you are still separated from service.”
Best option for your objective is to quit for at least 31 days, move the TSP account into an IRA and then get rehired after the TPS account has moved to the IRA.