[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1650.13]

[Page 264-265]
 
                    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.  1650.13  Monthly payments.

    (a) A participant electing a full post-employment withdrawal (i.e., 
a withdrawal of his or her entire account) can elect to withdraw all or 
a portion of the account balance in a series of substantially equal 
monthly payments, to be paid in one of the following manners:
    (1) A specific dollar amount. The amount elected must be at least 
$25 per month; if the amount elected is less than $25 per month, the 
request will be rejected. Payments will be made in the amount requested 
each month until the account balance is expended.
    (2) A monthly payment amount calculated based on life expectancy. 
Payments based on life expectancy are determined using the factors set 
forth in the Internal Revenue Service life expectancy tables codified at 
26 CFR 1.401(a)(9)-9, Q&A 1 and 2. The monthly payment amount is 
calculated by dividing the account balance by the factor from the IRS 
life expectancy tables based upon the participant's age as of his or her 
birthday in the year payments are to begin. 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 
prior December 31 account balance by the factor in the IRS life 
expectancy tables based upon the participant's age as of his or her 
birthday in the year payments will be made. There is no minimum amount 
for a monthly payment calculated based on this method.
    (b) A participant receiving monthly payments calculated based upon 
life expectancy can make one election, during a period to be determined 
by the Executive Director, to change to a fixed monthly payment. A 
participant can change the amount of his or her fixed payments annually. 
A participant who is receiving monthly payments based on a fixed dollar 
amount, however, cannot elect to change to an amount calculated based on 
life expectancy.
    (c) A participant receiving monthly payments, regardless of the 
calculation method, can elect at any time to receive the remainder of 
his or her account balance in a final single payment.

[[Page 265]]

    (d) The TSP will ensure that the annual total monthly payments 
satisfy any applicable minimum distribution requirement of the Internal 
Revenue Code by making a supplemental payment no later than the last 
date required by the Internal Revenue Service.
    (e) A participant receiving monthly payments may change the 
investment of his or her account balance among the TSP investment funds 
as provided in 5 CFR part 1601.
    (f) Participants who elect to withdraw their account balances in a 
series of monthly payments cannot transfer or roll over money from a 
traditional IRA or eligible employer plan into their TSP accounts. 
Participants who have both a civilian TSP account and a uniformed 
services TSP account cannot combine the two accounts if they are already 
receiving monthly payments from one of the accounts.