TSP Withdrawal Guide For Rehired Federal Employees

When you separate from federal service, you will have the option of making a TSP withdrawal. But what happens if, for some reason, you are then rehired as a federal employee? What happens to your withdrawal depends upon the duration of the break in service, and the type of withdrawal you have opted for. Here are the details about rehired federal employees TSP

TSP Withdrawal Guide For a Break in Service of Less than 31 Days

It is relatively straightforward. If the break in service is less than 31 full calendar days, and you get rehired by the Federal Government or Uniformed Services within this period, then you are not eligible for a TSP withdrawal.

Rehired Federal Employees TSP Withdrawal Guide For a Break in Service of More than 31 Days

If the break in service is for more than 31 days, then you are eligible to apply for a withdrawal. Note that applying does not mean you will get it. For this to be valid, it must be used for and paid while you are still separated from federal service.

Even this may not last, depending on the type of withdrawal. For example, if you applied for and started receiving monthly payments, it will stop once the Federal Government or Uniformed Services reemploy you. On the other hand, if you applied for a TSP annuity, and the same was purchased for you by TSP, then those payments will continue even after you are rehired.

Bottom line – If you plan to or must rejoin federal employment shortly after separation, make sure the break in service is not less than 31 days. If possible, wait until your TSP withdrawal application has been processed and paid.