TSP 77 Withdrawal Form for Separated Employees

Understanding TSP 77: Your Partial Withdrawal Option After Separation

If you’ve recently separated from federal service and you’re evaluating your financial options regarding your Thrift Savings Plan (TSP), one potential solution is submitting a TSP-77 form. In 2025, Form TSP-77 continues to serve as a key mechanism for accessing a portion of your TSP account without requiring you to initiate a full withdrawal.

This process gives you access to needed funds while keeping the majority of your savings invested, preserving the long-term growth of your retirement portfolio. This webpage provides a detailed explanation of how Form TSP-77 works, what makes you eligible, the exact steps to submit your request, the deadlines and limitations involved, and what tax consequences you need to prepare for. By the end, you’ll have a clear understanding of whether this path aligns with your retirement and income needs.

What Is Form TSP-77?

Form TSP-77 is the official document designed for separated federal employees who wish to make a one-time partial withdrawal from their Thrift Savings Plan. It is intended for individuals who have ended their federal service and want to withdraw a portion of their vested balance while allowing the rest of their account to remain invested in the TSP.

Unlike full withdrawals or scheduled installment payments, TSP-77 offers a singular opportunity to extract funds without terminating the account. This option is especially useful for those who may not yet need their full retirement savings or are waiting until a more tax-advantageous time to access the remaining funds.

Eligibility to Use TSP-77 in 2025

As of 2025, you are eligible to use Form TSP-77 only if you meet all the following conditions:

You are fully and permanently separated from federal service.
You have been separated for at least 31 calendar days.
Your TSP account holds a vested balance of $1,000 or more.
You have not previously submitted a TSP-77 partial withdrawal request.
You did not take an age-based in-service withdrawal (via Form TSP-75) while employed.

If you’ve already taken either of the above-mentioned withdrawals, your account becomes ineligible for further partial withdrawals. However, you can still choose to make a full withdrawal through TSP-70 or initiate monthly installment payments, which are separate withdrawal methods not governed by the same one-time restriction.

Key Differences Between TSP-77 and Other Withdrawal Options

To make an informed decision, it’s essential to understand the distinctions between the available TSP withdrawal forms:

Form TSP-75: Used for in-service withdrawals available to employees aged 59½ or older who are still actively working.
Form TSP-70: Utilized for full withdrawals or structured installment withdrawals after separation.
Form TSP-77: Applicable only once after separation and strictly for a partial, lump-sum distribution.

While TSP-75 supports early access during employment, and TSP-70 supports complete disbursement, TSP-77 uniquely allows you to maintain your TSP account while withdrawing a limited portion. This flexibility can be particularly valuable if you wish to minimize immediate tax obligations or delay larger withdrawals until reaching retirement milestones or qualifying for lower tax brackets.

When Can You Submit Form TSP-77?

Timing plays a crucial role in determining when your Form TSP-77 will be accepted and processed. Here’s what you need to know in 2025:

You must wait at least 31 calendar days after your official separation date before submitting your request.
Your former employing agency must transmit confirmation of your separation to TSP before your form can be processed.
Once the completed form and separation data are both on file, your request typically begins processing within 10 to 15 business days.

Any delays from your former agency in confirming your separation can stall your withdrawal request. To avoid setbacks, it’s advisable to follow up directly with your former HR department to ensure they have transmitted the required information.

Submitting Your TSP-77 Request: Step-by-Step Process

To navigate the TSP-77 process successfully in 2025, follow these step-by-step instructions:

1. Log Into Your TSP Online Account

Begin by accessing tsp.gov using your personal login credentials. Once logged in, navigate to the “Withdrawals” section. There you’ll find the option labeled “Partial Withdrawal After Separation.”

2. Generate Your Prefilled Form Online

Using the TSP online portal, you can initiate your request digitally and generate a PDF version of the form with much of your information prefilled. This not only streamlines the process but also reduces the chances of administrative errors.

3. Print and Sign the Form Manually

Although the form is generated online, the current protocol in 2025 requires a wet signature, which means you must physically print the document, sign it in ink, and avoid any electronic or digital signatures. Handwritten changes to prefilled fields will result in delays.

4. Mail or Fax Your Form to TSP

Send the signed form to the TSP processing center using the method of your choice:

Mail: Send through the U.S. Postal Service using the address listed on the form.
Fax: Use the secure number provided by the TSP.

Retain a complete copy of the submitted form for your personal records, especially if mailing.

5. Monitor the Processing Timeline

Once the TSP receives your signed form and confirms your separation, they will begin processing your request. Most requests are finalized and paid out within 3 to 5 business days after processing begins.

Limits and Rules Governing Your Withdrawal Amount

When filling out Form TSP-77 in 2025, there are several important financial thresholds to be aware of:

The minimum amount you can request is $1,000.
You may withdraw either a specific dollar amount or a percentage of your vested account balance.
The account balance must be sufficient to cover the amount requested after accounting for any outstanding loan balances or pending transactions.

Keep in mind that this is your only opportunity to make a post-separation partial withdrawal. All future withdrawals must be either full withdrawals or set up as recurring installments through other TSP forms.

Tax Withholding and Penalty Implications

In 2025, your withdrawal from the TSP will be subject to applicable federal tax laws, and the impact will vary depending on the type of account from which the withdrawal is made:

Traditional TSP: Withdrawals are taxable as ordinary income. A flat 20% federal income tax withholding will apply unless you elect otherwise.
Roth TSP: Withdrawals are tax-free only if they meet IRS qualifications: the account must be held for at least five years, and you must be age 59½ or older, or meet an exemption (such as permanent disability).

If you are under age 59½, and your withdrawal is not exempt from early distribution rules, a 10% IRS penalty may apply in addition to income tax.

A Form 1099-R will be issued to you by January 31 of the year following your distribution, and you will be responsible for reporting the income on your federal return.

How TSP-77 Affects Future Withdrawals and Account Access

Submitting Form TSP-77 permanently affects your future withdrawal choices. Here’s what you should know:

After using your one-time partial withdrawal, you forfeit your ability to submit another TSP-77 form in the future.
You can still choose to initiate a full withdrawal or set up monthly or quarterly installment payments at any point thereafter using Form TSP-70.
If you reenter federal service at any time, you’ll restart TSP contributions under a new account, but this new account will not reset your eligibility for another partial withdrawal.

Understanding these limitations in advance can help you avoid locking yourself out of future TSP flexibility.

Dealing With TSP Loans During the Withdrawal Process

If you still have a TSP loan outstanding after separation, it complicates the partial withdrawal process. Here’s what happens:

The TSP will send you a notification and repayment instructions for the outstanding loan balance.
If you do not repay the loan within the standard 90-day window, the unpaid amount will be declared a taxable distribution.
This distribution will be reported to the IRS and may count as a lump-sum withdrawal, possibly affecting your ability to file Form TSP-77.

The TSP will not process a TSP-77 request until all outstanding loan issues have been fully resolved or recorded.

Restrictions and Disqualifying Scenarios

Certain conditions will automatically disqualify you from using Form TSP-77:

If you’ve already used a TSP-77 in a prior separation.
If you previously submitted an in-service withdrawal through Form TSP-75.
If your vested account balance is less than $1,000.
If you are still employed in any federal position or enrolled in a phased retirement program.

If any of these scenarios apply to you, your only options will be to proceed with a full withdrawal or transfer your TSP to another eligible retirement account.

Impact of Reemployment on Your Withdrawal Rights

If you rejoin the federal workforce after using Form TSP-77:

You will begin contributing to a new TSP account once rehired.
Previous account restrictions, including your one-time partial withdrawal, will still apply.
The ability to submit a new TSP-77 is not reinstated, regardless of your new status.

This permanent restriction applies across your lifetime, so plan accordingly if you believe future reemployment is a possibility.

Most Common Filing Errors to Avoid

Errors in your TSP-77 submission can delay your withdrawal or result in rejection. Be careful to avoid:

Submitting the form before the required 31-day post-separation period.
Making any manual changes to prefilled fields.
Failing to secure agency confirmation of separation.
Using a digital signature or unsigned form.
Requesting an amount below the $1,000 minimum.

Triple-check all details and follow the current TSP rules to ensure your form is processed without issue.

Additional Recommendations for a Smooth 2025 Experience

To reduce stress and avoid surprises during the withdrawal process:

Confirm your mailing address and contact details are accurate on tsp.gov.
Use the My Account portal to track form processing and approval status.
Speak with a tax advisor or financial planner to understand how the withdrawal fits into your broader financial strategy.

Making the Right Move With Your TSP Withdrawal

Taking a partial withdrawal through Form TSP-77 is a serious financial decision that impacts both your immediate liquidity and your long-term retirement security. It gives you the ability to access cash without dissolving your entire TSP, but it comes with permanent limitations.

Use this opportunity carefully and with foresight. Make sure your withdrawal timing aligns with your financial goals and that you understand the tax responsibilities attached. If you’re unsure about your options or need help evaluating whether this form is appropriate for your situation, connect with a licensed agent listed on this website to receive expert support tailored to your retirement plans.