Trabucco said it usually takes “several weeks” between requesting a withdrawal to the funds being sent due to “a number of moving parts.” There could be a delay if your agency does not immediately report your separation, if you have outstanding TSP loans or if the documents you submitted were not properly filled out.
Trabucco also clarified that you can transfer your TSP to an IRA or another type of investment without taking a tax hit. You will only take a tax hit if you transfer into an account that is not tax-deferred.
After separation of service, participants can add funds to their TSP only through IRA’s or other plans, he said.
Trabucco also said people who have funds in the C, S, I or F Funds and want to protect them from market losses can do an interfund transfer to the G Fund.