TSP Modernization Act’s hidden provision
Federal News Network Article, January 15, 2026, titled: The TSP Modernization Act’s hidden provision: What federal employees need to know about portfolio diversification. The good news is a lesser-known provision of the TSP Modernization Act has quietly opened a door most federal employees don’t realize exists, and it helps protect against retirement planning concerns.
Now, FERS employees over 59½ can execute unlimited partial withdrawals. You can move money out as often as every 30 days. No penalties. No mandatory distributions.
For federal retirees, the change is equally significant. You’re no longer forced to make a single, all-or-nothing withdrawal election. You can take partial withdrawals every 30 days, giving you complete control over your retirement assets.
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