PessOptimist
Well-known member
I had never looked in to what happens to my TSP when I die. I just figured it would magically pass to my spouse. It does sort of. Not without pain on her part.
First, the form TSP-3, Designation of Beneficiary. The web site tells me:
“You do not have a valid Form TSP-3, Designation of Beneficiary, on file. Your account will be distributed according to the statutory order of precedence required by law. ONLY complete Form TSP-3 (bold and italic mine), Designation of Beneficiary, if you want distribution to be made in a way other than the following order of precedence:
To your spouse
If none, to your child or children equally, with the share due any deceased child divided equally among that child's descendants
If none, to your parents equally or to the surviving parent
If none, to the appointed executor or administrator of your estate
If none, to your next of kin who would be entitled to your estate under the laws of the state in which you resided at the time of your death”
The site tells me not to fill one out. My spouse is disturbed by that.
She or someone must submit a form TSP-17, Information Relating to Deceased Participant.
“the participant’s survivor(s) must submit Form TSP-17, Information Relating to Deceased Participant, to the TSP, along with a copy of the participant’s certified death certificate citing the final cause of death. All sections of Form TSP-17 should be completed. This will inform the TSP (or confirm to the TSP) that the participant is deceased, and will provide information that will help the TSP locate the participant’s potential beneficiaries.”
It appears that any monthly payment withdrawals I have going on at the time will stop and my account will be transferred to an account in her name.
“In the event of your death, if your spouse is entitled to a share of your account, a beneficiary participant account will be established for your spouse in his or her own name. If your spouse’s share is $200 or more, the TSP will maintain this beneficiary participant account, and the entire share will be invested in the Lifecycle (L) Fund most appropriate for your spouse's age unless he or she makes a different investment choice or chooses to withdraw the money as a single payment, monthly payments, annuity, or a combination of these options.”
That would be L Income fund. She will have to learn to deal with TSP.gov. It looks as if the normal withdrawal options and tax liabilities will apply to her account.
PO
First, the form TSP-3, Designation of Beneficiary. The web site tells me:
“You do not have a valid Form TSP-3, Designation of Beneficiary, on file. Your account will be distributed according to the statutory order of precedence required by law. ONLY complete Form TSP-3 (bold and italic mine), Designation of Beneficiary, if you want distribution to be made in a way other than the following order of precedence:
To your spouse
If none, to your child or children equally, with the share due any deceased child divided equally among that child's descendants
If none, to your parents equally or to the surviving parent
If none, to the appointed executor or administrator of your estate
If none, to your next of kin who would be entitled to your estate under the laws of the state in which you resided at the time of your death”
The site tells me not to fill one out. My spouse is disturbed by that.
She or someone must submit a form TSP-17, Information Relating to Deceased Participant.
“the participant’s survivor(s) must submit Form TSP-17, Information Relating to Deceased Participant, to the TSP, along with a copy of the participant’s certified death certificate citing the final cause of death. All sections of Form TSP-17 should be completed. This will inform the TSP (or confirm to the TSP) that the participant is deceased, and will provide information that will help the TSP locate the participant’s potential beneficiaries.”
It appears that any monthly payment withdrawals I have going on at the time will stop and my account will be transferred to an account in her name.
“In the event of your death, if your spouse is entitled to a share of your account, a beneficiary participant account will be established for your spouse in his or her own name. If your spouse’s share is $200 or more, the TSP will maintain this beneficiary participant account, and the entire share will be invested in the Lifecycle (L) Fund most appropriate for your spouse's age unless he or she makes a different investment choice or chooses to withdraw the money as a single payment, monthly payments, annuity, or a combination of these options.”
That would be L Income fund. She will have to learn to deal with TSP.gov. It looks as if the normal withdrawal options and tax liabilities will apply to her account.
PO
