future of tsp account???

[ftm821]

their is talk that the usps could start letting many of it's carriers go, if this happens, what becomes of my tsp account??/ thanks

 

[alevin]

their is talk that the usps could start letting many of it's carriers go, if this happens, what becomes of my tsp account??/ thanks

Hi ftm821. You can get answers at tsp.gov. The precise answer depends on how much time you have in with the fed.

http://www.tsp.gov/features/chapter04.html

For example, you would be able to take with you all of the contributions you've had taken out of your own paycheck. Depending on how and who you are employed with, if you've been in for 2 or 3 years minimum, you can also take the government matches and 1% basic with you. It would still count as a retirement account withdrawal so you'd either pay taxes on it as early withdrawal (if below retirement age) or have to roll it over into another tax-deferred IRA or some such within time limits. I think also you can leave it in TSP if you want, at least up to a certain time/age limit, if you don't need it. http://www.tsp.gov/features/chapter13.html

I was sweating getting downsized myself last few years, before I had my 20 years in. It hasn't happened, and I have my 20 in, so I have more options if push comes to shove than if it had come to pass say 2-3 years ago. Hope things go well for you.

 

[Steadygain]

Alevin - you are amazing!!

It's really nice having you on the MB.

Thanks for being who you are.

 

[Show-me]

Sorry I missed this one. If you are vested, 6 years, you keep it all. If you are not you get to keep your contribution and the agency contributions go into the TSP's general fund. If you withdraw any monies you will have to pay the appropriate penalty and taxes.

 

[Show-me]

Welcome and sorry I did not respond. Some times you have to shake the monitor to get our attention or type "bump" to push the tread to the top of the pile.