After Vader throws Palps down the well, he uses a device that captures Palps spirit and tells Luke to bury it where no one will ever find it and then pulls an Obi Wan, vanishing with only his helmet and clothes remain
Edit:
After Vader throws Palps down the well, his spirit goes up and blows up like fireworks in the shape of Micky Mouse ears. Vader then gets lifted in the air by the force, as his armor sheds he heals and turns young again. Thanking his son that he is now free