Changes

At retirement an employee can no longer take out loans.  If the balance is under $200 it is automatically cashed out but can be rolled over into a different plan.<ref>Balances of under $5 are forfeited to the TSP, but employees can later reclaim them.</ref>  The employee can choose from any combination of the following options with regards to the balance:

At retirement an employee can no longer take out loans.  If the balance is under $200 it is automatically cashed out but can be rolled over into a different plan.<ref>Balances of under $5 are forfeited to the TSP, but employees can later reclaim them.</ref>  The employee can choose from any combination of the following options with regards to the balance:

*Leave the balance, or part of it, in the account (at age 70 1/2 the balance must either be withdrawn entirely or an annuity purchased, if neither is done the account is forfeited but can be reclaimed; however no earnings are paid during the abandonment period.

*Leave the balance, or part of it, in the account (at age 70 1/2 the balance must either be withdrawn entirely or an annuity purchased, if neither is done the account is forfeited but can be reclaimed; however no earnings are paid during the abandonment period)

*Withdraw the balance, or part of it, either via rollover or cash out, or via monthly payments by purchasing an annuity or a specified amount (based on either an amount stipulated by the employee or using IRS life expectancy tables), but the amount can only be changed annually<ref>Current legislation has this changing to monthly, quarterly, or annual payments, and allowing the amount to be changed as frequently as desired, but implementing regulations have not been established.</ref>

*Withdraw the balance, or part of it, either via rollover or cash out, or via monthly payments by purchasing an annuity or a specified amount (based on either an amount stipulated by the employee or using IRS life expectancy tables), but the amount can only be changed annually<ref>Current legislation has this changing to monthly, quarterly, or annual payments, and allowing the amount to be changed as frequently as desired, but implementing regulations have not been established.</ref>

*To the court-appointed executor or administrator of the estate,

*To the court-appointed executor or administrator of the estate,

*To the next of kin as determined by the laws of the state where the employee/retiree lived at death.

*To the next of kin as determined by the laws of the state where the employee/retiree lived at death.

[[Category:Retirement]]

[[Category:Retirement]]

[[Category:United States Government]]

[[Category:United States Government]]