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Fill Out Your Tsp 79 Form

The TSP-79 form is a request used by Thrift Savings Plan (TSP) participants to convert their monthly payments into a final single payment. This form must be completed carefully, as it will close your TSP account upon processing. For those ready to take this step, filling out the form is straightforward; simply click the button below to begin.

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Article Structure

The TSP-79 form is a crucial document for participants in the Thrift Savings Plan (TSP) who wish to shift from receiving monthly payments to requesting a final single payment. This transition is significant because it effectively closes your TSP account and allows you to manage your finances according to your changing circumstances. The form captures essential personal details, including your account type—either Civilian or Uniformed Services—and requires the submission of your TSP account number. Moreover, it provides a section for direct deposit information, enabling you to specify how and where you would like your final payment to be sent, whether to a checking or savings account. Understanding tax implications is also crucial, which this form acknowledges by allowing additional withholding requests beyond the mandatory 20% for federal income tax. Finally, certification and notarization sections ensure the authenticity of the request, making it imperative for your signature to be verified. Completing this form carefully is vital to avoid delays in processing, ensuring you receive your final payment as intended.

Tsp 79 Example

Thrift Savings Plan

TSP-79

Change From Monthly Payments to Final Payment

October 2012

THRIFT SAVINGS PLAN

TSP-79

CHANGE FROM MONTHLY PAYMENTS TO FiNAL PAYMENT

I. INFORMATION ABOUT YOU

This request applies to my:

Civilian Account

Uniformed Services Account

Last Name

First Name

Beneﬁciary Participant Account

Middle Name

TSP Account Number

6.Foreign address? Check here.

Daytime Phone (Area Code and Number)

Date of Birth (mm/dd/yyyy)

Street Address or Box Number (For a foreign address, see instructions on back.)

Street Address Line 2

City

State

10.

Zip Code

–

II.DIRECT DEPOSIT INFORMATION—If you want all or a portion of your payment sent electronically to your bank account, you must complete this section.

11. Send my payment to: 12.

Name of Financial Institution

Checking

Savings

13.

ACH Routing Number (Must be 9 digits)	14.
	Checking or Savings Account Number

III.ADDITIONAL TAx WITHHOLDING—This section is optional. Please be aware that any previous withholding request for your monthly payments will not be applied to your ﬁnal payment.

15. In addition to the mandatory 20% withholding, withhold this amount for Federal income tax: $

.00

IV. CERTIFICATION AND NOTARIZATION—I certify that the information I have provided on all pages of this form is true and com- plete to the best of my knowledge. Warning: Any intentional false statement in this request or willful misrepresentation concerning it is a violation of law that is punishable by a ﬁne or imprisonment for as long as 5 years, or both (18 U.S.C. § 1001).

16.

Participant’s Signature

17.

/ /

Date Signed (mm/dd/yyyy)

18.Notary: Please complete the following. No other acknowledgement is acceptable (see instructions).

The person who signed Item 16 is known to or was identiﬁed by me and, before me, signed or acknowledged to have

signed this form. In witness thereof, I have signed below on this		day of	,	.
		Month		Year
My commission expires:
Date (mm/dd/yyyy)	Notary’s Signature
[seal]			(	)
			(	)
	Notary’s Printed Name		Notary’s Phone Number

Jurisdiction

Do Not Write Below This Line

FORM TSP-79, Page 1 (10/2012)

* P I I S 0 0 2 3 4 3 0 1 2 0 0 0 0 0 0 0 0 P I I S *

TSP-79, INFORMATION AND INSTRUCTIONS FOR PAGE 1

Use this form if you are receiving monthly payments and you want to request a ﬁnal single payment from your TSP account. This transaction will close your TSP account. You may also request additional tax withholding on your ﬁnal payment. If you want to transfer any portion of your ﬁnal payment to an IRA or eligible employer plan, be sure to complete one or both of the transfer sections on pages 2 and 3. If you want your ﬁnal single payment to be sent electronically to your bank, you must complete Section II.

To ensure that your request is not delayed, carefully type or print the requested information inside the boxes using black or dark blue ink.

SECTION I. Information About You. Provide the requested information in Items 1–10. In Item 1, you must indicate the type of account from which you are requesting a ﬁnal single pay- ment. Check only one box. If you have more than one account, you must submit separate forms for each account.

The address you provide on this form will be used to update the address in your TSP account record. The TSP will use the address you provide to send you important information regard- ing your transaction, including a check if you have not chosen direct deposit or a transfer of your ﬁnal payment.

If you have a foreign address, check the box in Item 6 and enter the foreign address as follows in Items 7–10:

First address line: Enter the street address or post ofﬁce box number, and any apartment number.

Second address line: Enter the city or town name, other principal subdivision (e.g., province, state, county), and postal code, if known. (The postal code may precede the city or town.)

City/State/Zip Code ﬁelds: Enter the entire country name in the City ﬁeld; leave the State and Zip Code ﬁelds blank.

If you use an Air/Army Post Ofﬁce (APO) or Fleet Post Ofﬁce (FPO) address, enter your address in the two available address lines (include the unit designation). Enter APO or FPO, as ap- propriate, in the City ﬁeld. In the State ﬁeld, enter AE as the state abbreviation for Zip Codes beginning with 090–098, AA for Zip Codes beginning with 340, and AP for Zip Codes beginning with 962–966. Then enter the appropriate Zip Code.

SECTION II. Direct Deposit Information. Complete this sec- tion if you want the TSP to send all or any part of your ﬁnal pay- ment directly to your checking or savings account by means of an electronic funds transfer (EFT). The TSP will not retain your current bank information for this ﬁnal payment request. If you do not ﬁll out Section II, you will receive a check in the mail for any portion of your payment not being transferred to an IRA or eligible employer plan. The check will be mailed to your address on record, unless you provide a different address in Section I.

Provide all of the requested information. If you do not know the 9-digit ACH routing number or your checking or savings account number, contact your ﬁnancial institution for this infor- mation. Direct deposits are made only to ﬁnancial institutions in the United States. If any of the information you provide in Sec- tion II is invalid, your form will be rejected.

SECTION III. Additional Tax Withholding. There is mandatory 20% Federal income tax withholding on the TAXABLE portion of a payment that is not transferred directly to a traditional IRA, eligible employer plan, or Roth IRA. You cannot waive withhold- ing for Federal income tax, but you can ask the TSP to withhold an additional amount by completing Item 15. (There is no with- holding, however, on any tax-exempt portions of uniformed service and beneﬁciary participant accounts, on Roth contribu- tions, or on qualiﬁed Roth earnings.) Note: Any previous with- holding election for your monthly payments will not apply to your ﬁnal payment.

For more information, read the TSP tax notices “Tax Informa- tion for TSP Participants Receiving Monthly Payments” and “Important Tax Information About Payments From Your TSP Account.”

Note about IRS Form W-4P: Section III is a substitute for IRS Form W-4P, Withholding Certiﬁcate for Pension or Annuity Payments. If you submit Form W-4P with this form, the infor- mation you provide in Section III will supersede the information on Form W-4P.

SECTION IV. Certiication and Notarization. Read the certiﬁ- cation carefully; then sign and date the form in Items 16 and 17. Your signature must be notarized; otherwise, your request will not be processed. Because the form will be ﬁled with a Federal agency in Washington, D.C., the notary must complete the nota- rization in Item 18. No other acknowledgement is acceptable.

MAILING INSTRUCTIONS. Make a copy of this completed form for your records.

Mail to:	Thrift Savings Plan
	P.O. Box 385021
	Birmingham, AL 35238
Or fax to:	1-866-817-5023

Note: Do not mail and fax your request. The TSP will automatically cancel the second request it receives. If you need to make a change or correction on your form, call the TSP immediately to cancel your ﬁrst request.

If you have questions, call the toll-free ThriftLine at 1-TSP- YOU-FRST (1-877-968-3778) or the TDD at 1-TSP-THRIFT5 (1-877-847-4385). Outside the U.S. and Canada, please call 404-233-4400 (not toll free).

Form TSP-79 (10/2012)

Name:

TSP Account Number:

(Last, First, Middle)

TRANSFER—TRADITIONAL

This page is optional. You and the IRA trustee or plan administrator must complete this page if you want to transfer all or part of the traditional (non-Roth) portion of your inal payment to a traditional IRA, eligible employer plan, or a Roth IRA. Your traditional TSP balance consists of traditional (tax-deferred) contributions, tax-exempt contributions, all agency contributions, and the earnings as- sociated with these contributions. Note: If you choose to transfer to a Roth IRA, you will have to pay tax on that portion when you ﬁle your tax return for the year.

V.YOUR TRANSFER ELECTION FOR TRADITIONAL BALANCE—After you complete Item 19, take or send this page (including the instructions on the back) to your ﬁnancial institution. Your IRA trustee or plan administrator must complete Section VI. You must submit the completed package in order for your transfer to be processed.

19.Transfer

.0% of the traditional (non-Roth) portion of my payments to the IRA or plan identiﬁed in Section VI.

VI. TRANSFER INFORMATION FOR TRADITIONAL BALANCE—This section is to be completed by the IRA trustee or plan administrator. The account described here must be a traditional IRA, eligible employer plan, or a Roth IRA. Please return this completed form to the participant. Do not submit transfer forms of inancial institutions or plans.

20.Type of Account:

Traditional IRA

Eligible Employer Plan

Roth IRA

21.

IRA/Plan Account Number or Other Customer ID

22.

Check this box if tax-exempt balances are accepted into the account identiﬁed above.

23.Provide the name and mailing address information below exactly as it should appear on the front of the check.

Make check payable to

If needed, use these boxes to supplement “check payable to” information above.

Street Address

–

}The ﬁnancial institution or plan will need to use this information to identify the account that will receive the transfer.

City

State

Zip Code

I conﬁrm the accuracy of the information in this section and the identity of the individual named above. As a representative of the ﬁnancial institution or plan to which the funds are being transferred, I certify that the ﬁnancial institution or plan agrees to accept the funds directly from the Thrift Savings Plan and deposit them into the IRA or eligible employer plan identiﬁed above.

24.

Typed or Printed Name of Certifying Representative (Last, First, Middle)

25.

Signature of Certifying Representative

()

Daytime Phone (Area Code and Number)

26. / /

Date Signed (mm/dd/yyyy)

Do not write in this section.

FORM TSP-79, Page 2 (10/2012)

TSP-79, INFORMATION AND INSTRUCTIONS FOR PAGE 2

General Information for Pages 2 and 3

You may elect to transfer all or part of your ﬁnal payment to a traditional IRA, an eligible employer plan, or a Roth IRA. The type of plan to which you can transfer your payment depends on whether your payment consists of a tradi- tional (non-Roth) balance, a Roth balance, or both.

If you would like to transfer all or any part of the traditional (non-Roth) portion of your payment to an IRA or eligible employer plan, complete Page 2.

If you would like to transfer all or any part of the Roth portion of your payment to a Roth IRA or Roth account main- tained by an eligible employer plan, complete Page 3.

If you have both a traditional and a Roth balance and you would like to transfer all or any part of both portions of your ﬁnal payment, you must complete and submit Pages 2 and 3, even if both transfers are going to the same ﬁ- nancial institution.

SECTION V. You may transfer all or any part of the traditional (non-Roth) portion of your ﬁnal payment to a traditional IRA, eligible employer plan, or Roth IRA. You must enter a percent- age between 1 and 100% in Item 19. Do not enter decimals or a percentage over 100%. If you decide to transfer to a Roth IRA, be aware that Roth IRAs accept only after-tax dollars. As a result, you must pay tax on the amount you transfer, and the tax liability is incurred for the year of the transfer. We strongly encourage you to consult with a tax advisor regarding your eli- gibility for, and the tax consequences of, making the transfer.

If your payment is not transferred directly to a traditional IRA, eligible employer plan, or Roth IRA, it will be subject to man- datory 20% Federal income tax withholding. (See Section III.) Read the TSP tax notices “Important Tax Information About Payments From Your TSP Account” and “Tax Information for TSP Participants Receiving Monthly Payments.”

SECTION VI. If you choose to transfer all or any part of your ﬁnal payment that contains your traditional balance to a tradi- tional IRA, eligible employer plan, or Roth IRA, your inancial institution or plan administrator must complete this section before you submit this form to the TSP.

Do not submit transfer forms of inancial institutions or plans; the TSP cannot accept them.

The institution or plan to which the payment is to be transferred must be a trust established inside the United States (i.e., the 50 states and the District of Columbia).

The ﬁnancial institution or plan should retain a copy of Page 2 to identify the account to which the check should be deposited when it is received. If the transfer is to a traditional IRA or Roth IRA, the institution accepting the transfer should submit Form 5498, IRA Contribution Information, to the IRS. The TSP will report all payments and transfers to you and to the IRS on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Proﬁt-Sharing Plans, IRAs, Insurance Contracts, etc.

Information for the IRA or Plan: Complete Section VI and return this form to the participant identiﬁed at the top of the page. The ﬁnancial institution or plan administrator must en- sure that the account described here is a traditional IRA, eli- gible employer plan, or Roth IRA.

Type of Account and Account Number. Indicate whether the transfer is to a traditional IRA, eligible employer plan, or Roth IRA in Item 20, and in Item 21 enter the account number, if available, of the IRA or plan to which the money is to be trans- ferred. If an account number is not available, provide informa- tion that will help you identify the check when it is sent to you.

Transfer of Tax-Exempt Balances. A uniformed services partici- pant may have contributed tax-exempt money from pay earned in a combat zone to his or her traditional balance. Check the box in Item 22 if tax-exempt balances are accepted into the account identiﬁed in Item 21. If the participant’s traditional (non-Roth) balance includes tax-exempt contributions, the taxable portion of the ﬁnal payment from the traditional balance will be transferred ﬁrst. Tax-exempt money will be transferred only if the taxable portion of the payment does not satisfy the participant’s transfer election and the plan or IRA accepts tax-exempt balances. If the plan or IRA does not accept tax-exempt balances, that portion of the ﬁnal payment will be paid directly to the participant.

Name and Mailing Address. Provide the name and mailing address information in the boxes provided in Item 23 exactly as you want it to appear on the front of the transfer check. You will need to identify the account to which the transfer should be deposited from the information contained in these boxes.

The certifying representative must provide the requested information in Items 24–26. If we need to contact the ﬁnancial institution or plan for more information, the individual named here will be used as the contact person.

Form TSP-79 (10/2012)

Name:

TSP Account Number:

(Last, First, Middle)

TRANSFER—ROTH

This page is optional. You and the IRA trustee or plan administrator must complete this page if you want to transfer all or a part of the Roth portion of your payment to a Roth IRA or to a Roth account maintained by an eligible employer plan. Your Roth TSP balance consists of any employee contributions that you designated as Roth when you made your contribution election and the earnings asso- ciated with these contributions. Withdrawals of Roth contributions are tax-free. The earnings associated with these contributions are also tax-free, but only if 5 years have passed since January 1 of the calendar year in which you made your ﬁrst Roth contribution and you have reached age 59½ or have a permanent disability. (See instructions.)

VII. YOUR TRANSFER ELECTION FOR ROTH BALANCE—After you complete Item 27, take or send this page (including the instructions on the back) to your ﬁnancial institution. Your IRA trustee or plan administrator must complete Section VIII. You must submit the completed package in order for your transfer to be processed.

27.Transfer

.0% of the Roth portion of my payments to the IRA or plan identiﬁed in Section VIII.

VIII. TRANSFER INFORMATION FOR ROTH BALANCE—This section is to be completed by the IRA trustee or plan administrator. The account described here must be a Roth IRA or a Roth account maintained by an eligible employer plan. Please return this completed form to the participant. Do not submit transfer forms of inancial institutions or plans.

28.Type of Account:

29.

Roth IRA

Eligible Employer Plan — Roth Account

IRA/Plan Account Number or Other Customer ID

30.Provide the name and mailing address information below exactly as it should appear on the front of the check.

Make check payable to

If needed, use these boxes to supplement “check payable to” information above.

Street Address

–

}The ﬁnancial institution or plan will need to use this information to identify the account that will receive the transfer.

City

State

Zip Code

31.

Typed or Printed Name of Certifying Representative (Last, First, Middle)

32.

Signature of Certifying Representative

()

Daytime Phone (Area Code and Number)

33. / /

Date Signed (mm/dd/yyyy)

Do not write in this section.

FORM TSP-79, Page 3 (10/2012)

FORM TSP-79, INFORMATION AND INSTRUCTIONS FOR PAGE 3

General Information for Pages 2 and 3

If you would like to transfer all or any part of the traditional (non-Roth) portion of your payment to an IRA or eli- gible employer plan, complete Page 2.

If you would like to transfer all or any part of the Roth portion of your payment to a Roth IRA or Roth account main- tained by an eligible employer plan, complete Page 3.

SECTION VII. You may transfer all or any part of the Roth por- tion of your ﬁnal payment to a Roth IRA or to a Roth account maintained by an eligible employer plan. Enter a percentage between 1 and 100% in Item 27. Do not enter decimals or a percentage over 100%.

Roth contributions are not subject to mandatory Federal in- come tax withholding because they are not taxable upon distri- bution. However, if you have not met the conditions necessary for your Roth earnings to be qualiﬁed (i.e., paid tax-free), any Roth earnings that are not transferred directly to a Roth IRA or to a Roth account maintained by an eligible employer plan are taxable and are subject to the mandatory 20% Federal income tax withholding. Roth earnings become qualiﬁed when the fol- lowing two conditions are met: (1) 5 years have passed since January 1 of the calendar year in which you made your ﬁrst Roth contribution, and (2) you have reached age 59½ or have a permanent disability. Note: The TSP cannot certify to the IRS that you meet the Internal Revenue Code’s deﬁnition of a dis- ability when your taxes are reported. Therefore, you must pro- vide the justiﬁcation to the IRS when you ﬁle your taxes.

The ﬁnancial institution or plan should retain a copy of Page 3 to identify the account to which the check should be deposited when it is received. If the transfer is to a Roth IRA, the insti- tution accepting the transfer should submit Form 5498, IRA Contribution Information, to the IRS. The TSP will report all payments and transfers to you and to the IRS on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Proﬁt- Sharing Plans, IRAs, Insurance Contracts, etc.

Information for the IRA or Plan: Complete Section VIII and re- turn this form to the participant identiﬁed at the top of the page. The ﬁnancial institution or plan administrator must ensure that the account described here is a Roth IRA or a Roth account maintained by an eligible employer plan.

Type of Account and Account Number. Indicate whether the transfer is to a Roth IRA or to a Roth account maintained by an eligible employer plan in Item 28, and in Item 29 enter the account number, if available, of the IRA or plan to which the money is to be transferred. If an account number is not avail- able, provide information that will help you identify the check when it is sent to you.

Read the TSP tax notices “Important Tax Information About Payments From Your TSP Account” and “Tax Information for TSP Participants Receiving Monthly Payments.”

SECTION VIII. If you choose to transfer all or any part of your ﬁnal payment that contains your Roth balance to a Roth IRA or Roth account maintained by an eligible employer plan, your inancial institution or plan administrator must complete this section before you submit this form to the TSP.

Do not submit transfer forms of inancial institutions or plans; the TSP cannot accept them.

The institution or plan to which the payment is to be trans- ferred must be a trust established inside the United States (i.e., the 50 states and the District of Columbia).

Name and Mailing Address. Provide the name and mailing ad- dress information in the boxes provided in Item 30 exactly as you want it to appear on the front of the transfer check. You will need to identify the account to which the transfer should be de- posited from the information contained in these boxes.

The certifying representative must provide the requested infor- mation in Items 31–33. If we need to contact the ﬁnancial insti- tution or plan for more information, the individual named here will be used as the contact person.

PRIVACY ACT NOTICE. We are authorized to request the information you provide on this form under 5 U.S.C. chapter 84, Federal Employees’ Retirement System. We will use this information to identify your TSP account and to process your request. In addition, this information may be shared with other Federal agencies for statistical, auditing, or archiving purposes. We may share the information with law enforcement agencies investigating a violation of civil or criminal law, or agencies implementing

a statute, rule, or order. It may be shared with congressional ofﬁces, private sector audit ﬁrms, spouses, former spouses, and beneﬁciaries, and their attorneys. We may disclose relevant portions of the information to appropriate parties engaged in litigation and for other routine uses as speciﬁed in the Federal Register. You are not required by law to provide this information, but if you do not provide it, we will not be able to process your request.

Form TSP-79 (10/2012)

Get Tsp 79 PDF Form

Form Characteristics

Fact Name	Fact Description
Form Purpose	The TSP-79 form allows participants to request a final single payment from their Thrift Savings Plan account, closing the account.
Account Types	This form can be used for both Civilian and Uniformed Services accounts.
Direct Deposit Option	Participants can opt to have their final payment sent electronically to a bank account by completing the Direct Deposit section (Section II).
Tax Withholding	A mandatory 20% withholding applies to the taxable portion of the final payment. Additional withholding can be requested.
Notarization Requirement	The signature on the form must be notarized to ensure the request is processed.
Mailing Instructions	Completed forms should be mailed to the Thrift Savings Plan at P.O. Box 385021, Birmingham, AL 35238.
Tax Information Reference	Participants should refer to IRS Form W-4P for more details about federal income tax withholding.
Governing Laws	The TSP-79 form operates under federal law and regulations applicable to the Thrift Savings Plan.

Guidelines on Utilizing Tsp 79

Completing the TSP-79 form involves several sections that require personal and financial information. Individuals seeking to switch from monthly payments to a final payment should follow the instructions in detail to ensure correct processing of their request. Below are the steps to fill out the TSP-79 form.

Indicate which type of account you're requesting the final payment from by checking either the "Civilian Account" or "Uniformed Services Account" box in Item 1.
Fill in your last name, first name, and middle name in Item 2.
Provide your TSP account number in Item 3.
If applicable, check the box in Item 6 for a foreign address; otherwise, proceed to Items 7-10.
In Item 5, include your daytime phone number, using the area code.
Enter your date of birth in Item 6 using the mm/dd/yyyy format.
For Items 7 and 8, enter your street address and city. If you have a foreign address, follow the provided instructions for formatting.
In Item 9, enter your state if applicable; otherwise, skip to Item 10 and enter your zip code.
In Section II, Item 11, indicate if you want your payment sent electronically to your bank. Then, provide the name of your financial institution in Item 12.
Complete Items 13 and 14 with your 9-digit ACH routing number and checking or savings account number.
In Section III, Item 15, enter any additional amount you wish to withhold for federal income tax.
Review the certification statement in Section IV. Sign and date the form in Items 16 and 17. Ensure that your signature is notarized in Item 18 by a notary public.
Check all sections for accuracy before submitting.

Once the form is completed, it is essential to retain a copy for personal records. The completed form should be mailed to the Thrift Savings Plan at the specified address or faxed if preferred. Care should be taken not to send the request through both mail and fax, as this could result in cancellation of the submission.

What You Should Know About This Form

What is Form TSP-79?

Form TSP-79 is used by Thrift Savings Plan (TSP) participants to request a final single payment after receiving monthly payments from their TSP account. This form is essential for closing a TSP account and may also be used to specify additional tax withholding and direct deposit information for the payment.

Who needs to fill out the TSP-79?

Any TSP participant who has been receiving monthly payments and wishes to transition to a final single payment must complete this form. This applies to both civilian and uniformed services account holders. If you have multiple accounts, a separate TSP-79 form is required for each account.

How do I submit the TSP-79 form?

After completing the form, participants should make a copy for their records and then mail it to the Thrift Savings Plan at P.O. Box 385021, Birmingham, AL 35238. Another option is to fax the form to 1-866-817-5023. It’s important to note that a participant should either mail or fax the request, but not both, as the TSP will cancel any duplicate requests.

What information is required in Section I of the form?

In Section I, participants must provide personal information, including their name, TSP Account Number, contact information, and whether they wish to apply this request to a Civilian or Uniformed Services Account. This section ensures that the TSP can accurately update records and process the payment request correctly.

Can I change my bank information for the direct deposit?

Yes, if you wish to receive your final payment via direct deposit, you must complete Section II of the form with your bank account details, including the bank’s name, the ACH routing number, and your account number. Please remember that the TSP will not retain your existing bank information for this final payment request. It is essential for participants to provide accurate and valid information to avoid delays.

What is the purpose of Section III regarding tax withholding?

Section III of the TSP-79 allows participants to request additional federal income tax withholding beyond the mandatory 20% on the taxable portion of their final payment. This section grants flexibility for tax planning, helping individuals avoid potential tax liabilities when they file their annual returns. However, any previous withholding requests made for monthly payments will not be applied to the final payment.

Is notarization required for this form?

Yes, notarization is a critical component of the TSP-79 form. After signing the certification in Section IV, a notary must acknowledge the participant's signature. This step is essential for validation, and without it, the TSP will not process the request.

What happens if I want to transfer part of my payment to an IRA?

If participants wish to transfer a portion of their final payment to a traditional IRA, eligible employer plan, or Roth IRA, they should complete the transfer sections outlined on pages 2 and 3 of the form. It's important to coordinate with the IRA trustee or plan administrator to ensure correct information is provided, facilitating a smooth transfer process.

How can I get assistance if I have questions about the TSP-79 form?

Participants can contact the Thrift Savings Plan for assistance by calling the toll-free ThriftLine at 1-TSP-YOU-FRST (1-877-968-3778) or through the TDD service at 1-TSP-THRIFT5 (1-877-847-4385). For individuals outside the U.S. and Canada, an alternative contact number is 404-233-4400.

Common mistakes

Filling out the TSP-79 form can be a straightforward process, but many make common mistakes that can delay their final payment. Here are eight frequent pitfalls to avoid when completing this important form.

One major error occurs in the account selection section. Participants often forget to check the correct box for the type of account from which they are requesting the final payment. There are two options: Civilian Account or Uniformed Services Account. It's crucial to choose one; otherwise, the request could be processed incorrectly.

Another frequent mistake involves providing incomplete personal information. Items such as your full name, TSP account number, and contact details in Sections I and II must be fully filled out. Leaving out even one detail, like the day of birth or an incomplete address, can result in delays or rejections. Always double-check this information.

Many individuals fail to include proper direct deposit information if they want their final payment sent electronically. This includes filling out the bank name, ACH routing number, and account number. It's important to ensure the ACH routing number is accurate and consists of nine digits. Mismatches can lead to rejected requests, pushing back your payment.

Skipping the tax withholding section is another common mistake. Although it’s optional, if you want any additional withholding beyond the mandatory amount, be sure to explicitly specify it. Not doing so may affect your tax situation when it's time to file.

Signature and notarization are also stumbling blocks. Some forget to sign the form or to have their signature notarized. Without a proper notarization in Section IV, the form cannot be processed. The notary’s acknowledgment is crucial and there must be no alternative methods used; following the guidelines is essential.

A common oversight is failing to provide the correct mailing address, particularly for those with a foreign address. It’s vital to follow the detailed instructions to format the foreign address properly. Missing this step could lead to significant delays or misdirection of necessary documentation.

Finally, omitting to make a copy of the completed form for personal records can complicate matters later. Participants should keep a copy for reference and to assist in any future inquiries. If there’s a need to follow up on the status of the request, having the original documents handy can expedite the process.

By being mindful of these common errors, participants can ensure a smoother experience when filling out the TSP-79 form. Proper attention to detail will help avoid unnecessary complications and facilitate quicker access to final payments.

Documents used along the form

When filling out the TSP-79 form to request a final payment from your Thrift Savings Plan, it's often helpful to prepare additional documents that complement your request. Below is a list of forms commonly used alongside the TSP-79 to ensure a smooth and efficient transaction process.

IRS Form W-4P: This form allows you to indicate how much federal income tax should be withheld from your pension or annuity payments. If you want to make any changes to your federal tax withholding, you should complete and submit this form with your TSP-79.
Transfer Request Form: If you plan to transfer a portion of your TSP balance to an IRA or another qualified plan, this additional form is necessary. It details the transfer request to ensure that funds are properly redirected.
Beneficiary Designation Form: This form is essential for those who want to update or confirm who will receive the TSP account in the event of their passing. Keeping beneficiary information current is crucial for estate planning.
Direct Deposit Authorization Form: If you wish to receive your funds electronically, this form needs to be completed. It provides your bank's information, allowing for automatic deposits into your checking or savings account.

Considering these forms in conjunction with your TSP-79 can help facilitate your financial transactions, making the process easier and less stressful. Be sure to double-check all information to avoid delays.

Similar forms

Form W-4P: Similar to the TSP-79, Form W-4P is a withholding certificate for pension or annuity payments. Both forms require you to specify withholding amounts and involve tax-related decisions about your final payments.
Form 1099-R: This document reports distributions from retirement accounts. Like the TSP-79, it provides stakeholders with important information regarding final payment amounts and the tax implications of withdrawals.
Direct Deposit Authorization Form: This form allows individuals to authorize electronic transfers to bank accounts, similar to the direct deposit section in the TSP-79, which facilitates the transfer of final payment directly to the bank.
Financial Account Transfer Form: Both documents facilitate the movement of funds, whether to a new account or between plans. The TSP-79 allows for transfers to IRAs or employer plans, paralleling the financial account transfer process.
Withdrawal Request Form: This form is often required for withdrawing funds from retirement accounts. It's akin to the TSP-79, as both are involved in final payment requests and may include details about tax withholding.
Beneficiary Designation Form: While the TSP-79 is primarily about payment changes, both forms share a purpose in informing account management, with the beneficiary form identifying who receives funds upon account holder's passing.
IRS Form 4506-T: This request for tax return transcripts is related to final distributions from retirement accounts. Like the TSP-79, it deals with tax implications and compliance for distributions.
Retirement Account Distribution Form: Similar to the TSP-79, this form allows for specifying how distributions should be handled, detailing account types, payment methods, and tax withholding preferences.
Retirement Plan Summary Plan Description: This document outlines the details of retirement plans. While it's informational, it relates to the TSP-79 in that both provide essential information about account management and options available to participants.
Account Closure Form: This form is specifically designed to close an account. Like the TSP-79, which requests final payment that usually results in account closure, it is focused on the conclusion of account activity.

Dos and Don'ts

When filling out the TSP-79 form, it's essential to follow guidelines to ensure your request is processed efficiently. Here’s a list of things to do and avoid:

Do: Provide accurate personal information, including your full name, account number, and contact details.
Do: Check the appropriate box regarding the type of TSP account to ensure your request is directed correctly.
Do: Use black or dark blue ink and print clearly to avoid delays in processing your application.
Do: Ensure your signature is notarized, as this step is required for the form to be valid.

Don't: Leave any fields blank. Filling in all required sections is crucial for timely processing.
Don't: Forget to indicate whether you want direct deposit. If you do not complete this section, you will receive a check via mail.
Don't: Submit the form without making a copy for your records. It’s wise to keep documentation of your request.
Don't: Use non-standard ink colors or writing styles; stick to formal and clear formatting.

Misconceptions

Here are eight common misconceptions about the TSP-79 form and clarifications for each one:

Misconception 1: The TSP-79 can be used for any type of account.

This form is specifically for participants receiving monthly payments who want to request a final single payment from their TSP account. It is not applicable for other TSP transactions.

Misconception 2: You don’t need to provide a notarized signature.

A notarized signature is required for the TSP-79 to be processed. Without it, your request will not be considered valid.

Misconception 3: Previous tax withholding choices apply to the final payment.

Previous withholding requests will not be applied to your final payment. You must specify any new withholding instructions on the TSP-79 form.

Misconception 4: You can submit this form online.

The TSP-79 must be completed and submitted by mail or fax. It cannot be filed electronically through an online system.

Misconception 5: The form can be used to change payment methods after submission.

Once submitted, changes cannot be made to the payment method or account information on the TSP-79. If you need to make adjustments, contact TSP immediately.

Misconception 6: All banks can receive direct deposits for TSP final payments.

Direct deposits can only be made to financial institutions located within the United States. Foreign banks are not eligible for direct deposit.

Misconception 7: You can complete the form using any ink color.

The TSP requests that you use black or dark blue ink to ensure clarity and avoid processing delays.

Misconception 8: The form only affects your current month’s payments.

Filing the TSP-79 will close your TSP account and request a final payment, impacting future transactions and account status.

Key takeaways

1. The TSP-79 form is specifically for individuals who are already receiving monthly payments and wish to request a final single payment from their Thrift Savings Plan account.

2. Filling out the form requires personal information, including your name, TSP account number, and the type of account (Civilian or Uniformed Services) from which you are requesting the payment.

3. Ensure accurate entry of your address, as the Thrift Savings Plan will use this information for sending important communications and payments. Foreign addresses have specific formatting requirements that must be followed.

4. Direct deposit options are available. If you prefer your final payment to be sent electronically, complete the direct deposit section with your bank details. Direct deposits are only applicable for financial institutions located within the United States.

5. Be aware that there is a mandatory withholding of 20% for federal income tax on the taxable portion of your payment, unless you choose to transfer the amount directly to an IRA or eligible employer plan.

6. Previous tax withholding elections made for monthly payments do not apply to your final payment. You may choose to request additional withholding if desired.

7. A notarized signature is required for your form to be processed. Make sure to sign and date the form, and have a notary complete the necessary sections.

8. It's crucial to mail the completed form to the specified address and not to fax or send it via both methods, as one will cancel the other.

9. If you have questions during the process or need clarification, do not hesitate to reach out to the TSP’s customer service for assistance.

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