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Retired TSP participants often tell us they wish they'd started planning what to do with their TSP accounts much earlier than they did—at age 50 and even earlier. We put this series together as a starting point. Helping participants retire comfortably whenever they're ready—and safeguarding their accounts—are our top priorities.
Keep money in your pocket
You can stay with the TSP even if you separate from federal service. Many retirees decide to keep their savings in the TSP after retirement to take advantage of flexible withdrawal options, low expenses, and easy-to-understand investment funds. Some retirees have told us they didn’t even know that keeping their money in the TSP was an option.
Here’s some important information for you to know: You have several options for how to use your money in your TSP account. Flexible withdrawal options allow you to request payments on a schedule that works for you. And the TSP is completely transparent about our expenses, which are lower than 99% of investment options.*
And, as long as your money is in the TSP, you can easily manage your investments. Choose a Lifecycle Fund (L Fund) to automatically rebalance your investments and get the best expected return for the amount of expected risk appropriate for you. Or choose among the five low-cost individual TSP funds to design your own investment portfolio.
You can stay with the TSP forever if you choose
Participating in the nation’s largest retirement plan means your TSP account may be an easy target for financial professionals who would benefit financially from managing your retirement investments. Be prepared to ask the right questions and compare expenses and investment funds before making a decision that you can't undo. You can keep money in your TSP account forever as long as you maintain the minimum account balance. But if you’re separated from service and take out all your money from the TSP, your account will be closed.
Use our scorecard to keep track of how the TSP compares to other options.
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