National Active and Retired Federal Employees Association

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On November 17, President Trump signed the TSP Modernization Act into Law.
November 20, 2017

On November 17, President Trump signed into law the TSP Modernization Act, H.R. 3031, which provides more flexible withdrawal options for Thrift Savings Plan (TSP) participants. The legislation was endorsed by NARFE and we applaud this action.

Specifically, the legislation allows multiple, partial post-separation withdrawals, which participants can time to their individual needs, and provides multiple, age-based withdrawals for participants who are still working and are older than age 59-1/2. The TSP Modernization Act also provides greater flexibility by allowing the election of quarterly or annual payments and permitting periodic withdrawals that can be changed at any point during the year. Payments could be stopped while leaving the account balance in the TSP. Finally, the bill eliminates the withdrawal election deadline. For more information, click here.

The Federal Retirement Thrift Investment Board, which oversees the TSP, has two years to issue regulations necessary to implement the expanded withdrawal options. While TSP participants will welcome the changes, they may need to wait up to two years to enjoy the expanded options.

The TSP provides individual retirement accounts for federal employees and retirees, as well as members of the military. It is the federal workforce equivalent of private-sector 401(k) and Roth 401(k) plans.

NARFE thanks all its members who took action to secure final passage of this bill.

National Active and Retired Federal Employees Association
NARFE (National Active and Retired Federal Employees Association)
606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

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