By Mike Miles
May 29th, 2012 | Uncategorized
Q. I am leaving my career-conditional federal service for a job in private industry after just over three years. The value of the account is rather small, but I was able to vest for the match. I have not ruled out returning to the service at a later time because I am still in my early 20s. If I were to take the cash option and then subsequently wish to re-enroll in the Thrift Savings Plan in the event I become federal again, would I have to repay this amount plus any interest that would have accrued to get back in the program? If this is the case, I think rolling the amount over to an IRA would be best. However, the cash would be most desirable for me if there is no possibility of a future required payment on re-enrollment into TSP.
A. You would not be required to repay the money into the TSP on rehire. You would begin a new TSP account.
Al R Says:
May 30th, 2012 at 2:49 pm
You really shouldn’t cash out your TSP account. Leave your money in the TSP or move it directly into an IRA account.