TSP and Spousal Rights

Written By Patrick Kulakowski

I am currently rolling over funds to a traditional and ROTH Individual Retirement Account and discovered that my wife was required to approve the transaction. Both of us thought that was curious, so I pulled the string on this.

5 CFR Part 1650 outlines the rules for withdrawing funds from the Thrift Savings Plan (TSP) after employment ends. Specifically, § 1650.61 focuses on spousal rights during these withdrawals.

Here's a breakdown of the key points:

  • Spousal Rights:

    • Right to a specific annuity (retirement income) if the participant chooses a full withdrawal.

    • Spouse's consent through a signed distribution request is required for:

      • Any other type of full withdrawal.

      • Any partial withdrawal.

      • Changes to installment payments.

  • Spousal Rights Apply if:

    • Total withdrawals exceeding $3,500.

    • Any partial withdrawal regardless of amount.

    • Changes to existing installment payments (amount or frequency).

In short, this regulation protects spouses by ensuring they are informed about and potentially involved in certain withdrawal decisions from the TSP after the participant separates from service.

Patrick Kulakowski
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