House OKs Bill to Ease Limits on Thrift Savings Plan Withdrawals

Federal employees participating in the Thrift Savings Plan would be able to make multiple withdrawals once they reach age 59-and-a-half or after they separate from federal service, under legislation passed by the House.

The TSP Modernization Act (H.R. 3031) would end existing restrictions on withdrawals that the bill’s backers say have discouraged federal workers and other TSP enrollees from participating in the retirement savings plan. The TSP is the defined contribution component within the Federal Employees Retirement System, which also offers a defined benefit pension.

The bill is needed because too many TSP participants are moving out of ...