What happens if you retire and leave your TSP funds in the account with no further contributions?

• A. You must withdraw immediately
• B. Leave your money in TSP with no further contributions
• C. Transfer to a new employer's retirement plan
• D. Convert to a savings bond

Answer: (B)

After retirement, you can keep your Thrift Savings Plan funds in the account without making new contributions. The balance stays invested and continues to grow tax-deferred, giving you flexibility on when to start withdrawals. You’re not required to cash out immediately; you can take distributions later or roll the balance to an IRA or another eligible retirement plan if you choose. Just keep in mind that, later on, you may face minimum-distribution rules once you reach a certain age. The other options aren’t automatic or required: there’s no obligation to withdraw now, transfer to a new employer’s plan, or convert to a savings bond.