[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1650.11]

[Page 265]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1650--METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS PLAN--Table of Contents
 
                 Subpart B--Post-Employment Withdrawals
 
Sec. 1650.11  Monthly payments.

    (a) A participant can withdraw his or her account balance in two or 
more substantially equal monthly payments, to be calculated under one of 
the following methods:
    (1) A fixed monthly payment amount. The amount must be at least $25 
per month and must satisfy any minimum distribution requirements. 
Payments will be made each month until the account is expended. If the 
last scheduled payment would be less than the chosen amount, it will be 
combined and paid with the previous payment;
    (2) A fixed number of monthly payments. The participant's month-end 
account balance for the month preceding the month of the first payment 
will be divided by the number of payments chosen in order to determine 
the monthly amount. The amount must be at least $25 per month and must 
satisfy any minimum distribution requirements. In January of each 
subsequent year, the TSP will divide the December 31 account balance 
from the prior year by the remaining number of payments in order to 
determine that year's monthly payments. If the monthly payment amount is 
less than $25, it will be increased to $25. This process will be 
repeated each year until the account is expended; or
    (3) A monthly payment amount calculated using the factors set forth 
in Internal Revenue Service expected return multiply table V, 26 CFR 
1.72-9. There is no $25 minimum monthly payment under this method. In 
the year payments begin, the monthly payment amount is calculated by 
dividing the month-end account balance for the month preceding the month 
of the first payment by the factor from table V based upon the 
participant's age as of his or her birthday in that year. This amount is 
then divided by 12 to yield the monthly payment amount. In subsequent 
years, the monthly payment amount is recalculated each January by 
dividing the December 31 account balance from the previous year by the 
factor from Table V based upon the participant's age as of his or her 
birthday in the year payments will be made. That amount is divided by 12 
to yield the monthly payment amount.
    (b) A participant who chooses to receive monthly payments calculated 
using one of the three methods set forth in paragraph (a) of this 
section cannot change the method after payments begin. Also, except as 
provided in paragraph (c) of this section, the participant cannot change 
the number of payments or the payment amount after payments begin.
    (c) A participant receiving monthly payments can choose to receive 
the remainder of his or her account balance in a final single payment.
    (d) A participant receiving monthly payments may invest his or her 
account balance as provided in 5 CFR part 1601.