The Thrift Savings Plan (TSP) is available to federal employees and works very similar to a 401k. It is part of the three-tier FERS system, which also includes a pension and Social Security. So what happens if you leave federal service? Can your TSP move with you?
Regardless of how you separate from federal service, retirement or resignation, your TSP fund is designed so that you can take your money with you if you choose to do so. It takes about 30 days for you to have access to your funds. You no longer will be able to contribute to your Thrift Savings, however, because contributions are deducted through payroll.
To read more about your options if you leave federal service click below.
Phased Retirees and TSP
If you are a phased retiree, you are still eligible to contribute to your Thrift Savings Plan. Those contributions are subject to normal restrictions. However, you are not eligible for post-employment withdrawals and you are not subject to the RMD age requirement. Being a phased retiree, you receive income from wages and an annuity. Your contributions are calculated based on your basic pay. Your annuity will not be used for that calculation.