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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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Marty  
#1 Posted : Wednesday, July 10, 2019 10:50:48 AM(UTC)
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Effective later this year, TSP will allow for unlimited post-separation withdrawals and up to four age-based in-service withdrawals per year.

Will the TSP account owner be required to obtain notarized spousal consent EACH AND EVERY TIME a withdrawal is requested?

Or, will there be any way for the spouse to authorize the account owner to make future withdrawals without having to submit a notarized consent for each subsequent withdrawal?
TheRealOrange  
#2 Posted : Wednesday, July 10, 2019 11:05:12 AM(UTC)
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Originally Posted by: Marty Go to Quoted Post
Effective later this year, TSP will allow for unlimited post-separation withdrawals and up to four age-based in-service withdrawals per year.

Will the TSP account owner be required to obtain notarized spousal consent EACH AND EVERY TIME a withdrawal is requested?

Or, will there be any way for the spouse to authorize the account owner to make future withdrawals without having to submit a notarized consent for each subsequent withdrawal?

Here is information from the TSP guidance issued on May 30, 2019:

What will be the withdrawal process under the new rules?

At the same time as we roll out the new withdrawal options, we'll begin using enhanced online tools to make the withdrawal process even more efficient. Instead of just providing you with a completed paper form to send in, our new online tools will allow you to complete at least part of the transaction online. In many cases you'll still need to provide notarized signatures or other materials in paper form. But when that happens, you'll be given only the necessary pages to complete and submit. When we receive those pages, we'll be able to link them to the information you've already submitted securely online and complete your transaction. This will greatly reduce the chance of errors that could cause delays, rejections, or— worse—unintended withdrawals that can't be reversed.

Italics added.

https://www.tsp.gov/PDF/formspubs/tspfs10.pdf
Marty  
#3 Posted : Wednesday, July 10, 2019 5:27:50 PM(UTC)
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The guidance doesn't explicitly state if a notarized form is required for each and every withdrawal, or if there is a way to only have to do it one time. I expect it will have to be every time, which will be a burdensome requirement. Imagine having a spouse that has mobility problems and having to take them to a place to get a new form signed and notarized every time you want to make a withdrawal, or if your spouse is hospitalized for an extended period of time.
ex-military  
#4 Posted : Thursday, July 11, 2019 4:33:57 AM(UTC)
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Those requirements are in place to protect the spouse. The spouse has marital property rights to the TSP, and if the Fed employee was able to just withdraw without the signatures, that money could disappear (along with said Fed Employee) and leave the spouse with nothing.
Marty  
#5 Posted : Thursday, July 11, 2019 2:00:05 PM(UTC)
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For example:

Form A: This form is only valid for a single withdrawal, and requires both the account owner (and spouse) to sign/notarize.

Form B: This form is valid for this and all future withdrawals, and requires both the account owner (and spouse) to sign/notarize. Future withdrawals can be made by either party with only one signature. This would be similar to a joint bank account.

Form C: This form would be used by either party to revoke Form B if the need arises.

roger.d  
#6 Posted : Thursday, July 11, 2019 7:08:42 PM(UTC)
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Originally Posted by: Marty Go to Quoted Post
For example:

Form A: This form is only valid for a single withdrawal, and requires both the account owner (and spouse) to sign/notarize.

Form B: This form is valid for this and all future withdrawals, and requires both the account owner (and spouse) to sign/notarize. Future withdrawals can be made by either party with only one signature. This would be similar to a joint bank account.

Form C: This form would be used by either party to revoke Form B if the need arises.



Don't try to sell your idea to us. Sell it to the TSP administrators.

Learn to discipline yourself, so someone else doesn't have to
ex-military  
#7 Posted : Friday, July 12, 2019 3:52:16 AM(UTC)
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Originally Posted by: Marty Go to Quoted Post
Effective later this year, TSP will allow for unlimited post-separation withdrawals and up to four age-based in-service withdrawals per year.

Will the TSP account owner be required to obtain notarized spousal consent EACH AND EVERY TIME a withdrawal is requested?

Or, will there be any way for the spouse to authorize the account owner to make future withdrawals without having to submit a notarized consent for each subsequent withdrawal?


When you refer to "withdrawal", or you referring to a standard regularly scheduled withdrawal that one would take during retirement (basically the RMD +/- a given amount)? Or are you referring to huge chunk withdrawals (ie. buy a new car, pay off a house, type amounts)?

If you are referring to the latter, than I would expect you would have to get a notarized spouse signature EACH AND EVERY TIME. I don't think it would be too much of a hardship given that those type of withdrawals are going to be relatively infrequent.
Exit7A  
#8 Posted : Sunday, July 21, 2019 2:15:09 PM(UTC)
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Originally Posted by: Marty Go to Quoted Post
The guidance doesn't explicitly state if a notarized form is required for each and every withdrawal, or if there is a way to only have to do it one time. I expect it will have to be every time, which will be a burdensome requirement. Imagine having a spouse that has mobility problems and having to take them to a place to get a new form signed and notarized every time you want to make a withdrawal, or if your spouse is hospitalized for an extended period of time.


Have you tried a "Power of Attorney"?
That's all I got to say about that.
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