TSP Designation of Beneficiary (TSP-3) and order of precedence (2024)

FAQs

What is the order of precedence in a will? ›

The order of priority is any surviving spouse or domestic partner, then a child, then a grandchild, then a parent, and then a sibling.

Only a Form TSP-3 is valid for designating beneficiaries to your TSP account(s); a will or court order (i.e., divorce decree) is not valid for the disposition of a TSP account. You may, however, designate your estate or a trust as a beneficiary on Form TSP-3.

Statutory order of precedence

To your spouse. If none, to your child or children equally, with the share due any deceased child divided equally among that child's descendants. If none, to your parents equally or to your surviving parent. If none, to the appointed executor or administrator of your estate.

For group insurance policies, the order typically starts with your spouse, then your children, then your parents, and then your estate. If there is no default order specified in your policy, the payout may be paid to your estate, or may also be held in probate.

The rank of an operation is called its precedence, and an operation with a higher precedence is performed before operations with lower precedence. Calculators generally perform operations with the same precedence from left to right, but some programming languages and calculators adopt different conventions.

If you are a spouse beneficiary of a deceased civilian or uniformed services TSP participant's account, and your share of the balance in the TSP account is $200 or more, we will establish a beneficiary participant account in your name .

Use this form to designate a beneficiary or beneficiaries to receive your Thrift Savings Plan (TSP) account after your death. If you would like your TSP account to be distributed according to the order of precedence, do not designate beneficiaries.

At death, the assets in these accounts do not pass according to the TSP owner's will. They pass as a non-probate asset directly to the designated beneficiary. If the surviving spouse is the beneficiary then the assets in the TSP can be rolled over into the spouse's retirement account.

The Rule of 55 allows workers who leave their job during or after the year they turn 55 to avoid paying the 10% early withdrawal penalty on their retirement account distributions. It doesn't matter why you are leaving, but you must be at least 55 years old in the calendar year you are leaving your job.

What are the new rules for TSP beneficiaries? ›

According to Weaver, TSP regulations changed on June 1, 2022, and going forward all primary beneficiaries must be deceased before the TSP will pay out to any contingent beneficiaries.

The primary beneficiary is the person or persons selected to receive the death benefit (contributions and interest) in the event of your death. The contingent beneficiary is the person or persons selected to receive the benefit if the primary beneficiary is not alive at the time of your death.

An executor can override a beneficiary as long as doing so is necessary to follow the terms outlined in the will or a court order. However, an executor cannot override a beneficiary to change or withhold their inheritance or modify the terms of the last will and testament just because they want to.

Your primary beneficiary is first in line to receive your death benefit. If the primary beneficiary dies before you, a secondary or contingent beneficiary is the next in line. Some people also designate a final beneficiary in the event the primary and secondary beneficiaries die before they do.

You can list a primary beneficiary who will receive 100% of the proceeds and then name a secondary (or contingent) beneficiary to receive 100% of the proceeds in case your primary can't accept benefits for any reason. You can elect to have multiple beneficiaries split the proceeds.

The precedence of operations determines the order in which operations are performed within expressions. High precedence operations are performed before lower precedence operations. Since parentheses have the highest precedence, operations within parentheses are always performed first.

The introductory clause is the first paragraph of your simple will and immediately follows the document's title. The introductory clause plays a very important role; it identifies you as the testator and declares that the simple will is your last will and testament.