[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: 5CFR1650.2]

[Page 262-263]
 
                    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 is separated from Government service can elect 
to

[[Page 263]]

withdraw a portion of his or her account balance in a single payment, or 
the entire account balance by one or a combination of the withdrawal 
methods described in subpart B of this part.
    (b) A post-employment withdrawal will not be paid unless TSP records 
indicate that the participant is separated from Government service. The 
TSP will cancel a post-employment withdrawal election upon receiving 
information from an employing agency that a participant is no longer 
separated.
    (c) A participant cannot make a post-employment withdrawal until any 
outstanding TSP loan has either been repaid in full or declared to be a 
taxable distribution. An outstanding TSP loan will not affect a 
participant's eligibility for an in-service withdrawal.
    (d) 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 rules:
    (1) A participant who is reemployed in a TSP-eligible position on or 
before the 31st full calendar day after separation is not eligible to 
withdraw his or her TSP account in accordance with subpart B of this 
part.
    (2) A participant who is reemployed in a TSP-eligible position more 
than 31 full calendar days after separation and who made a post-
employment withdrawal while separated may not withdraw any remaining 
portion of his or her account balance in accordance with subpart B of 
this part until he or she again separates from Government service.
    (e) A participant who has not separated from Government service may 
be eligible to withdraw all or a portion of his or her account in 
accordance with subparts D and E of this part.
    (f) A participant can elect to have any portion of a single or 
monthly payment that is not transferred to an eligible employer plan or 
traditional IRA deposited directly, by electronic funds transfer, into a 
savings or checking account at a financial institution in the United 
States.
    (g) If a participant has a civilian TSP account and a uniformed 
services TSP account, the rules in this part apply to each account 
separately. For example, the participant is eligible to make one age-
based in-service withdrawal from each account.