Yepper, and when you make a TSP withdrawal, they automatically withhold the maximum amount so you have to wait until you file to recoup the excess they kept back. I just retired and am in the process of moving my TSP to a vehicle that pays a guaranteed minimum 6% and which also protects the principle 100%. It will also allow me to manage my taxes so I owe them a little bit at the end of the year - no way I want to have them owing me for anything.
I am about to retire and very interested in something that would pay 6%. Annuity? If you are willing would you message me the name of the product to which you are referencing? I would be much obliged. :-)