Resigning with less than 3 years of time

[cmanvan]

I have less than three years of service. I am thinking about resiging from my fedral permanent appointment to return to school and broaden my horizons. Wondering what my options are for my fers/tsp? I am also wondering how to figure out how much of my retirement I would get if I completely cashed it out? Thanks

[donheff]

How far are you from three years? That is the cutoff for permanent reinstatement eligibility (assuming you have a permanent civil service job). If you leave with less than three you would have to go through all of the initial hire BS to return. If you are close it would be nice to have an easier pathway back to federal service if you see something you like in the future.

[Stevewc]

If possible leave the TSP in place also.
One day you will want that G-fund. I understand it is possible to transfer future IRA's into it if desired.
Wish I had a path to get bond money in it.
Steve

[donheff]

Quote:

Originally Posted by Stevewc If possible leave the TSP in place also. One day you will want that G-fund. I understand it is possible to transfer future IRA's into it if desired. Wish I had a path to get bond money in it. Steve

+1 I transferred my old traditional IRA into the TSP. I assume someone who resigns can do the same with a future rollover 401K or other pretax account.

[jimnjana]

Quote:

Originally Posted by cmanvan I have less than three years of service. I am thinking about resiging from my fedral permanent appointment to return to school and broaden my horizons. Wondering what my options are for my fers/tsp? I am also wondering how to figure out how much of my retirement I would get if I completely cashed it out? Thanks

you would get nothing from FERS as far as a pension is concerned, you may want to stick it out til you have 5 years of service. That is the minimum for years of service to lock in a pension benefit. If you received any matching contributions to your TSP account, you will lose them as well. I believe you need to have 3 years of service to keep the matching contribution. Good luck.