Thanks

When we say there are a lot of options you can pretty much transfer your TSP into any Qualified (CD’s would not be qualified so you would have to pay the tax on the entire balance before you could open the CD) plan. Qualified plan meaning an IRA or Annuity so to avoid the tax consequences you will be somewhat limited to the type of investment. There are thousands of qualified plans out there with the 2 most popular being IRA’s and Annuities. The reason most employees choose annuities is because most of them are guaranteed not to lose money. Second, they typically have the best distribution options (taking your cash) that allow your balance to last the longest and at the same time protect your heirs.

Let us know if anything is still unclear. Thanks for your post!

1) When you retire, you can rollover your entire balance wherever you want.

2) Not sure of your question on number 2, so if you will clarify we will try to answer that for you.

3) Because you have already taken your age based in service withdrawal you cannot make any other transfers until 30 days after you retire.

4) There are tons of options out there that will allow you to take payments out on a systematic basis. We would encourage you to do anything but a CD because the rates are the worst they have been in years right now.

Hope that helps! If you have additional questions do not hesitate to ask. Thanks!

The TSP will allow you to withdraw out as little or as much as you want once you retire. The only concern we have with Postal employees leaving their money with the TSP is the lack of options. When you start drawing funds from your TSP the return you get on your money becomes very important. In an ideal world, Postal employees should live off the interest of their TSP so you never “kill the golden goose”. After everyone lost a ton of money in 2008 most employees moved into the G fund. The good news about the G fund is it is safe. The bad news is it is not keeping up with inflation which causes you to exhaust your TSP funds prematurely.

We suggest employees look at other options that are just as safe as the G fund but can still give you returns that will help you keep up with inflation. These options are very popular, but you must qualify for them in that you cannot access more than 10% of your TSP balance in a year.

If you would like more information on the other options we will be happy to write an article at a later date on how they work.

Postal Employees have 2 penalty-free options when rolling over their TSP:

1) When you retire, and are age 55 or older

OR

2) When you are still working, and are age 59.5 or older (this is your one-time, Age Based In-Service Withdrawal)

So, in your situation you can do it when you retire if you are at least 55. If you still have questions just let us know!