Benefits & Executive Compensation News

Furloughed Feds Offered $4K Lifeline in Shutdown Relief Bill

Jan. 15, 2019, 10:16 PM

Federal employees not getting paid during the government shutdown could empty $8,000 a month from their nest eggs tax- free under a plan from House lawmakers.

Newly minted House Ways and Means Committee member Don Beyer, D-Va., co-authored the Financial Relief for Feds Act (H.R. 545).

The proposal would allow cash-strapped employees to draw $4,000 from qualified retirement accounts every two weeks the shutdown stretches on without triggering the 10 percent penalty that typically applies to early withdrawals.

The temporary exemption would cover withdrawals from the Thrift Savings Fund, the government-run retirement savings program, as well as personal...

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