Federal employees and retirees participating in the Thrift Savings Plan (TSP) will have new withdrawal options by Sept. 15, 2019, according to a report in FederalNewsNetwork.com.
The new options are part of the TSP Modernization Act of 2017 and will provide more flexibility when TSP participants can access money from their accounts. According to the TSP, these options fall into the following categories:
- Multiple age-based (for those 59-1/2 or older) in-service and post-separation partial withdrawals will be allowed.
- Ability to choose whether withdrawal should come from a Roth balance, traditional balance, or a proportional mix of both.
- No longer be required to make a full withdrawal election after you turning age 70-1/2 and are separated. (Participants will still need to receive IRS-required minimum distributions (RMDs).)
- Separated participants, in addition to the option of monthly payments, will be able to choose quarterly or annual payments, and will be able stop, start, or make changes to installment payments at any time.
The Federal Retirement Thrift Investment Board (FRTIB), the agency that manages the TSP, said Tuesday its plans to have the new options available in mid-September is ahead of Congress’ deadline of Nov. 17.
For a FAQs fact sheet released by the TSP earlier this year, click here.