I am a new professional with the government and I think an oppourtunity will come up for me to move back into the private sector which will mean that I will have worked in the Government less then 2 years. What will happen to my TSP, should I stop contributing now? Will I just loose my matching (i am under the FERS program) or everything I put in. It all seems really confusing and I am a bit overwhelmed right now...
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TSP Rollover 401K
- Thread starter seanx820
- Start date
Hey,I'm pretty sure, You leave the government and you lose matching . Then you can leave any part of or all in the TSP until mandatory withdrawals start at 70 Years of age?
DB
Show-me
Well-known member
Welcome Sean!
You loose only the matching contributions. Your money is always yours. You have to be "vested" for five years to be able to keep the match. Also if you withdrawal your portion you pay the tax on it. You can roll it into a IRA.
thats awesome, i am glad i do not loose the money that i put in, so I will keep matching since it is never a definite if I leave the government (besides i guess since I don't have to take it out until I am 70, who says i won't re-enter federal service in 5 more years....).
my next question is do I keep the earnings that I make up the non-matching part of the money i put in?
Like if I put in $1000 and it made 500 bucks somehow for a total of $1500, do I only get the $1000 back?
my next question is do I keep the earnings that I make up the non-matching part of the money i put in?
Like if I put in $1000 and it made 500 bucks somehow for a total of $1500, do I only get the $1000 back?
James48843
Well-known member
Vesting:
Agency Automatic (1%) Contributions are subject to “vesting.” You become “vested” in (that is, entitled to keep) these contributions and any earnings
they accrue only after you have completed a time-in-service requirement — which is 3 years for most FERS employees and 2 years for FERS employees
in Congressional and certain noncareer positions.
All Federal civilian service counts toward vesting — not just service while you are a TSP participant.
The date your vesting period begins is determined by your TSP Service Computation Date (TSP-SCD), which your agency reports to the TSP record keeper. If you are a FERS participant, your Service Computation Date is shown along with the required vesting information on your quarterly and annual TSP participant statements. The date will never be earlier than January 1, 1984.
If you leave Government service before satisfying the vesting requirement, the Agency Automatic (1%) Contributions and their earnings will be forfeited to the
TSP. If you die before separating from service, you are automatically considered vested in all the money in your account.
Note: You are immediately vested in your own contributions and in any earnings they accrue. If you are receiving Matching Contributions, you are also immediately vested in those contributions and any earnings they accrue.
Source: http://tsp.gov/forms/tspbk08.pdf
Go to "TSP.GOV", click on "Civilian" button for "forms and publications.", then "publications", then "booklets", then "Summary of the Thrift Savings Plan (7/2009) - 29 pages - LPV 10/2008
Agency Automatic (1%) Contributions are subject to “vesting.” You become “vested” in (that is, entitled to keep) these contributions and any earnings
they accrue only after you have completed a time-in-service requirement — which is 3 years for most FERS employees and 2 years for FERS employees
in Congressional and certain noncareer positions.
All Federal civilian service counts toward vesting — not just service while you are a TSP participant.
The date your vesting period begins is determined by your TSP Service Computation Date (TSP-SCD), which your agency reports to the TSP record keeper. If you are a FERS participant, your Service Computation Date is shown along with the required vesting information on your quarterly and annual TSP participant statements. The date will never be earlier than January 1, 1984.
If you leave Government service before satisfying the vesting requirement, the Agency Automatic (1%) Contributions and their earnings will be forfeited to the
TSP. If you die before separating from service, you are automatically considered vested in all the money in your account.
Note: You are immediately vested in your own contributions and in any earnings they accrue. If you are receiving Matching Contributions, you are also immediately vested in those contributions and any earnings they accrue.
Source: http://tsp.gov/forms/tspbk08.pdf
Go to "TSP.GOV", click on "Civilian" button for "forms and publications.", then "publications", then "booklets", then "Summary of the Thrift Savings Plan (7/2009) - 29 pages - LPV 10/2008
