So many federal employees ask “Can I access my TSP while on Federal Disability Retirement?” and unfortunately, after retirement you are not able to contribute to your TSP. You are given the option to cash it out, roll it over or leave it alone. However, there may be a penalty for cashing out depending on your circumstances.
The Thrift Savings Plan is one of the greatest advantages to becoming a federal employee, but there are other options for you to take advantage of if you can no longer contribute to your TSP. Federal Disability Retirement affects your TSP and you must be prepared for that when looking at your future.
For details on the best option for you, contact TSP directly or a financial planner that has experience with helping federal employees.