[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: 5CFR1650.2]

[Page 264]
 
                    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 A--General
 
Sec. 1650.2  Eligibility for a TSP withdrawal.

    (a) A participant who separates from Government employment, as 
defined in Sec. 1650.1, can withdraw his or her account by one of the 
withdrawal methods described in subpart B of this part using the 
procedures set out in subpart C of this part.
    (b) A separated participant who is reemployed in a position in which 
he or she is eligible to participate in the TSP is subject to the 
following withdrawal eligibility rules:
    (1) A participant who is reemployed in a TSP-eligible position on or 
before the 31st full calendar day after separation cannot withdraw his 
or her TSP account (except for an in-service withdrawal described in 
subpart D of this subpart). If the participant is scheduled for an 
automatic cashout, as described in Sec. 1650.22, the cashout will be 
canceled if the participant informs the TSP that he or she has been 
reemployed or expects to be reemployed within 31 full calendar days of 
separation.
    (2) A participant who is reemployed in a TSP-eligible position more 
than 31 full calendar days after separation may withdraw the portion of 
his or her account balance which is attributable to the earlier period 
of employment. If the amount attributable to the earlier period of 
employment is greater than $3,500, the participant must submit a 
properly completed withdrawal request (Form TSP-70) selecting a 
withdrawal option that results in an immediate withdrawal. However, a 
Form TSP-70 will not be accepted unless the TSP records indicate that 
the former employing agency reported the participant as separated from 
Government employment. If a participant has elected to receive monthly 
payments under Sec. 1650.11, upon report by the agency that the 
participant is not separated, payments will not be made and, if already 
started, will stop.
    (c) A participant who has not separated from Government employment 
can elect a withdrawal option described in subpart D of this part by 
following the procedures set out in subpart E of this part.
    (d) A participant cannot make a post-employment withdrawal until any 
outstanding TSP loan has been either repaid in full or declared to be a 
taxable distribution. An outstanding TSP loan does not affect a 
participant's eligibility for an in-service withdrawal.
    (e) All withdrawals are subject to the rules relating to spouse's 
rights (found in subpart G of this part), domestic relations orders, 
alimony and child support legal process, and child abuse enforcement 
orders (5 CFR part 1653). Post-employment withdrawals are also subject 
to the Internal Revenue Code's required minimum distribution rules.

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