Do you have unclaimed money in the TSP? In the past five years, unclaimed funds in accounts have built up to a sum of more than 88 million dollars. This money is just sitting there, untouched and unused, waiting for someone to claim it. In previous years, the TSP provided lists of these unclaimed accounts but due to security and identity issues, they have decided to do away with it. Are one of these inactive or abandoned accounts yours? Are you the child or heir to someone who passed while holding one of these accounts? If so you could have thousands of dollars just waiting with your name on it.
There are two types of unclaimed accounts. Inactive participants are those who have not made any recent activity within their account. This can be active military who have terminated contributions, beneficiary participants, or many others. Abandoned accounts occur when someone reached the age of 70 ½ years old and does not make a withdrawal choice for their TSP. This causes the TSP to send out multiple letters, which usually prompt a response.
The most common reason any account goes unclaimed, however, is failure to provide the TSP with an updated address. If you change your address, remember to keep your finances up to date or it could cost you! You might want to check out your own TSP accounts as well as ask around to friends and family to make sure you or anyone who care about isn’t missing out on their share of that 88 million dollars!
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