House Passes Bill Exempting Some Federal Employees From Retirement Plan Withdrawal Penalty

By on May 13, 2015 in Retirement with 19 Comments

The House passed legislation on Tuesday in a 407-5 vote that would allow Federal law enforcement officers, firefighters, and air traffic controllers to make penalty-free withdrawals from governmental plans after age 50.

Firefighters and federal law enforcement officers are eligible to retire at age 50 after 20 years of service and are subject to mandatory retirement at age 57. The legislation, known as the Defending Public Safety Employees’ Retirement Act (H.R. 2146), would amend the tax law to allow these employees to withdraw money from the TSP accounts prior to age 59.5 without incurring the 10% IRS tax penalty.

The bill was originally sponsored by Rep. David Reichert (R-WA).

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

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