8
•
You have a number of withdrawal options, depending on whether you
have both traditional and Roth money in your account or just one source.
If you only have one source (traditional or Roth), you can
− withdraw a specific dollar amount from your vested account balance
as long as it’s at least $1,000, or
− withdraw your entire vested account balance.
If you have both traditional and Roth, you have those same two
options, but you can also
− withdraw a specific dollar amount ($1,000 minimum) and request that
it come only from traditional or only from Roth,
− withdraw all of your traditional money, or
− withdraw all of your Roth money.
If you choose instead to withdraw money from both traditional and Roth,
your withdrawal will be taken pro rata from both. That means that your
withdrawal will have the same proportion of traditional and Roth money
as you have in your total vested account balance. Example: You have
$100,000 in your vested account balance, including $80,000 traditional
and $20,000 Roth. If you take a $10,000 withdrawal, $8,000 will come from
traditional and $2,000 will come from Roth.
•
You can make an age-59 withdrawal only from an account that’s
associated with your active employment. So, for example, if you have
a uniformed services account but have le the uniformed services and
are now a federal civilian employee, you can only make an age-59
withdrawal from your civilian TSP account. If both of your accounts are
associated with your active employment (e.g., you’re a federal civilian
employee and a reservist), the rules explained here apply to each
account separately.
•
You may be able to roll over all or part of your age-59 withdrawal to
a traditional IRA or an eligible employer plan.
7
However, your eligibility
7 A traditional IRA is an individual retirement account described in IRC § 408(a) or an individual
retirement annuity described in IRC § 408(b). The traditional IRA category does not include an
inherited IRA, a Roth IRA, or a Coverdell Education Savings Account.
A Roth IRA is an individual retirement account described in IRC § 408A.
An eligible employer plan is a plan qualified under IRC § 401(a) (including a § 401(k) plan, profit-
sharing plan, defined benefit plan, stock bonus plan, and money purchase plan); an IRC § 403(a)
annuity plan; an IRC § 403(b) tax-sheltered annuity; or an IRC § 457(b) plan maintained by a
governmental employer.