Who gets your TSP and FEGLI when you die? Beneficiary mistakes to avoid

By the OnPAR Federal Retirement Education editorial team · Last updated November 9, 2026

Related: FEGLI in retirement · FERS survivor benefit · FERS retirement checklist · TSP guides

Short answer: The TSP and FEGLI each pay whoever is on their own form, not who your will, divorce decree or family expects. If nothing valid is on file, each follows a legal order of precedence [1] [3]. The costliest mistake is not updating after a life change: the TSP says marriage, divorce and remarriage do not automatically update your designation [1]. This page is education, not legal advice.

1. Who gets the money if you do nothing

For the TSP, “child” means a biological or adopted child. It does not include a stepchild unless you adopted the child [1]. Sometimes the default order is exactly what you want. OPM says you only must designate if you want someone outside the order, a different order, a trust, or if proof of a marriage or divorce isn’t readily available [4].

2. The seven mistakes

Mistake 1: Not updating after divorce (and assuming the divorce decree handles it)

The TSP states it plainly: if you divorce, even remarry, and don’t make a new designation, your TSP account will be paid to the individual on your record, even if that person gave up all rights to it [1]. A will, prenuptial agreement, separation agreement, property settlement agreement or court order will not override a designation or the order of precedence [1].

Illustration (made-up numbers): You divorce in 2019, remarry in 2022 and never update your TSP form. At your death your account is $400,000. If your ex-spouse is still the designated beneficiary, the TSP pays the ex-spouse, and your current spouse is not a beneficiary of that account. For FEGLI, OPM says that if there is no valid court order on file, the designated beneficiary is paid first, and OPM’s own advice is: “If you marry or divorce, complete a new form” [3] [4]. Divorce paperwork can involve court-ordered benefits, so talk to an attorney.

Mistake 2: Thinking your will controls these accounts

A participant cannot use a will to designate a TSP beneficiary [2]. The TSP cannot honor a will or other document [1].

Mistake 3: A form that is not valid

• TSP: the designation must be received before your death, be signed and dated by you and one witness (age 21 or older), have primary shares that add up to 100%, contain no cross-outs or alterations, identify each beneficiary clearly, and not split Roth and traditional balances. A designation must be received by the TSP within 365 days of your most recent signature [2]. You can also designate through My Account [1].
• FEGLI (SF 2823): only you can sign it, two witnesses must sign and give addresses, a witness can’t be someone you name, and your employing office must receive it before you die. A form delivered on a weekend or federal holiday isn’t received until the next workday [4].
• A witness who is also named a TSP beneficiary can’t receive a payment; if that person is the only beneficiary, the designation is invalid [2].

Mistake 4: Sending it to the wrong place, or assuming one form covers everything

Each benefit has its own form [4]:

Check each one separately. OPM says it does not keep FEGLI designations for employees of other agencies and can’t tell an employee who the beneficiary is; ask the office that keeps your personnel folder [4].

Mistake 5: No contingent beneficiary

The TSP lets you name up to 20 beneficiaries in total, primary and contingent [2]. Naming contingent beneficiaries means you decide who is next, instead of leaving it to chance or to the default order above. Ask the TSP and OPM how they handle a named beneficiary who dies before you.

Mistake 6: Naming a minor child directly

For FEGLI, OPM notes a court will usually have to appoint a guardian to receive payment for a minor child [3]. Both the TSP and FEGLI let you designate a trust [1] [4]. Ask an estate attorney whether that fits your situation.

Mistake 7: Mixing up beneficiaries with the FERS survivor annuity

A FERS lump-sum designation (SF 3102) does not change who is eligible for a FERS survivor annuity. OPM says these forms “do not affect the right of any person who is eligible for survivor annuity benefits” [4]. Your spouse’s annuity is a separate choice at retirement: see how the FERS survivor benefit works.

3. What your beneficiary should know about taxes

• A spouse beneficiary of a TSP account can leave the money in a beneficiary participant account in their own name. It isn’t taxable or reportable until they withdraw [6].
• A non-spouse beneficiary may be able to roll the money by direct transfer to an inherited IRA [6].
• Traditional TSP money is generally taxed as ordinary income when withdrawn; qualified Roth money is not [6]. See TSP Roth vs traditional.

What to do next

1. This week: log in to TSP My Account and read your current beneficiaries. Fix anything outdated online.
2. Ask HR (or OPM, if retired; retrieving an old file can take a while) for a copy of your FEGLI designation. Or simply file a new SF 2823 with two witnesses; OPM says it supersedes what is on file [4].
3. Review after every life event: marriage, divorce, birth, adoption, death of a beneficiary, retirement.
4. Check every form: TSP, FEGLI, FERS lump sum and unpaid compensation [4].
5. See FEGLI in retirement, what FEGLI costs after you retire and the FERS retirement checklist. For families after a death: how to report the death of a federal retiree.

Questions and answers

Who gets my TSP if I have no beneficiary?

The TSP pays your spouse first; if none, your children equally; then your parents; then the executor or administrator of your estate; then your next of kin under your state's law. A will does not change this.

If I divorce, is my ex-spouse removed as my TSP beneficiary?

No, not automatically. The TSP says that if you divorce and do not make a new designation, your account is paid to the person on your record even if that person gave up rights to it. File a new designation.

How do I change my FEGLI beneficiary?

Complete SF 2823, sign it, have two witnesses sign and give their addresses, and send it to your employing office (or to OPM if you are retired). It must be received before your death and replaces any earlier form.

Can I leave my TSP to someone in my will?

No. A will cannot designate a TSP beneficiary. Use Form TSP-3 or the online beneficiary tool in My Account.

Official sources

1. TSP: Designating beneficiaries
2. 5 CFR 1651.3: TSP designation of beneficiary (eCFR)
3. OPM FAQ: Who will get my FEGLI life insurance benefits when I die?
4. OPM: Designating a Beneficiary (FEGLI, TSP, FERS and CSRS forms)
5. OPM: SF 2823, Designation of Beneficiary (FEGLI)
6. IRS Publication 721: Tax Guide to U.S. Civil Service Retirement Benefits

Checked against IRS, OPM, SSA and TSP sources on November 6, 2026. Education only, not legal, tax or financial advice. Your own situation may differ: check with a tax professional, OPM, the TSP, OPM or your state tax office. Not affiliated with OPM, the IRS, SSA, the TSP or any government agency.