New bill makes changes to TSP
- By FederalSoup Staff
- Jun 23, 2017
Reps. Elijah Cummings (D-Md.) and Mark Meadows (R-N.C.) on June 23 introduced legislation that would allow federal employees to make multiple age-based and post-separation withdrawals from their Thrift Savings Plan accounts, Federal Times reports.
According to the report, the TSP Modernization Act of 2017 would remove restrictions that currently allow federal employees to make a withdrawal from their TSP account when the reach the age of 59 1/2 or allow retirees to make a single withdrawal of a portion of their account balance.
Cummings said in a statement that the bill would better align the TSP with other retirement plans offered by the private sector and state and local governments as well as encourage participants to keep their TSP accounts to take advantage of low administrative fees even after they retire or separate from federal service, the article notes.