More details to this question:
My fiancee, Rob, cashed out his tsp fund and they sent a check to the bank to be put into an ira.. well the money was never put into an ira and the main bank head quarters said that the money was received and that it was used to pay off a debt that we had and that we had $25 left in a bank account.. well neither of our cards work and the bank in town cant find our money..
1 ANSWER
Yes, probably. Most pension related savings plans are exempt from debt collection. For example, there was a case last year where a bank was required to return funds which the bank had deducted from a checking account into which the borrower had transferred Social Security payments. It would require some research to confirm it, but I am pretty sure that federal TSP funds are similarly protection.
Dana Sack
510-286-2200
Answered on Mar 16th, 2015 at 4:26 PM