TRAINEE GUIDE - Recruit Training Command - The US Navy

TRAINEE GUIDE A-950-0001
OUTLINE SHEET 2-03-1 (continued)
g. Reservists that are Federal Civil Service employees can have both
civilian and military accounts.
h. The Secretary of the Navy may designate personnel in critical
ratings to receive matching contributions into TSP.
i. In-Service withdrawals are allowed for participants who can
document financial hardship.
(1) You can not return or repay the money you remove from your
account.
(2) After a financial hardship withdrawal, contributions can
not be made into your TSP account for the following 6
months.
(3) Before 59½-years-old , you will pay an early withdrawal
penalty and income tax.
j. Members can borrow money against their accounts.
(1) TSP loans can be granted.
(a) For general purposes.
(b) To purchase a primary residence.
(2) Any contributions being made to your TSP account will be
terminated for 6 months after each financial hardship
withdrawal.
k. Upon separation from the Navy, there are several options for your
TSP account:.
(1) Receive a single payment for your entire account.
(2) Receive monthly payments based on the amount accumulated
and one’s life expectancy.
(3) Use your account balance to purchase a TSP annuity, which
pays a monthly benefit for life.
(4) Transfer TSP funds to an Individual Retirement Account
(IRA) or other qualified retirement plan.
(5) Leave money in the TSP to continue earning interest.
(a) No further contributions are allowed.
(b) Withdrawal of funds must begin no later than when you
are 70 1/2 years-old.
l. FOR RESERVISTS ONLY: Reservists that are federal civilian
employees can have both ____________ and ____________ accounts.
m. Matching funds are allowed by Service Secretaries for critical
military specialties when designated.
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