Federal Workers, Retirees in Thrift Savings Plan Get New Options

Federal employees participating in the Thrift Savings Plan will no longer be limited to one withdrawal of their funds after they either reach age 59-and-a-half or leave the government, under a final rule issued Sept. 3.

The TSP is a tax-deferred retirement savings plan—similar to 401(k) plans available to private sector workers—within the Federal Employees Retirement System, which also offers a defined benefit pension. The TSP Modernization Act, signed by President Donald Trump in November 2017 after passing Congress with bipartisan support, ended most restrictions on withdrawals that the law’s backers said discouraged federal workers and other TSP enrollees from ...