When you finally decide to withdraw your account account balance you can have TSP transfer it to your own IRA account or eligible retirement plan or take it out in the form of monthly payments. These options can be combined as long as the account holder has not taken an aged based withdrawal.
A lump sum may be paid directly to your or part or all of it may be transferred to an IRA or qualified plan this type of movement or Rollover can only be done once per year. What that means is that you can Rollover the funds from another plan into that plan no more than once per year.
If you decide on a series of monthly payments, you can choose:
- a specific dollar amount to be paid monthly
- a series of monthly payments computed by TSP based on IRS life expectancy table
- All or part of monthly payments may be transferred into an IRA or other qualified retirement account.
Here are the annuity choices
- single life
- joint life with your spouse or a someone other than your spouse but must have an insurable interest like a blood relative or adopted relative or a former spouse.
- a person living with you in a relationship that would constitute a common – law marriage in those jurisdictions that recognize them.
Please check the TSP website if you have a special circumstance which is covered on that website