Upon receiving information from the employing agency that a participant has been separated
for more than 31 days and that any outstanding loans have been closed, provided the
participant has not made a withdrawal election before the distribution is processed,
if the account balance is $5.00 or more but less than $200, the TSP record keeper
will automatically distribute the entire amount of his or her account balance. The TSP will not pay this amount by EFT. The participant may not elect to leave this amount in the TSP, nor will the TSP
transfer any automatically distributed amount to an eligible employer plan, traditional
IRA, or Roth IRA. However, the participant may elect to roll over this payment into an eligible employer
plan, traditional IRA, or Roth IRA to the extent the roll over is permitted by the
Internal Revenue Code.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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