TSP contribution question


Q. I was told that I can still contribute to TSP after I retire from the military at 20 years. However, when trying to clarify that information I stumbled upon your blog and saw this Q&A:
Q: I enlisted in the Marine Corps and signed up for the Thrift Savings Plan in 2004. I was severely injured in Iraq in 2005 and was retired from active service in 2006. I am now receiving Combat Related Special Compensation, Social Security and my compensation from the Veterans Administration. Can I continue to add to my TSP account as a military retiree? I’m only 23 years old and would love to add to it.
A: You may only contribute to the TSP through federal payroll deduction or via transfer from an eligible outside retirement plan.
My question is: What constitutes an “eligible outside retirement plan” and if I retire at 41 years old after 20 years of service, can I continue to contribute to the TSP via my military retirement check?

A. See the instructions for form TSP-60 for the definition of an eligible outside retirement plan. You may not defer Military Retired Pay into the TSP.


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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