Bill Exempting Some Feds From TSP Withdrawal Penalty Expected to Become Law

By on June 25, 2015 in Retirement with 2 Comments

Congress has passed legislation that would allow Federal law enforcement officers, firefighters, and air traffic controllers to make penalty-free withdrawals from governmental plans after age 50. It now goes to the White House for the president’s signature.

The Thrift Savings Plan said this about the bill on its website:

H.R. 2146, the Defending Public Safety Employees’ Retirement Act, passed the Senate on June 24, 2015 and was sent to the President for his signature. This bill amends the Internal Revenue Code to allow specified federal law enforcement officers, customs and border protection officers, federal firefighters, and air traffic controllers who separate from service in or after the year they turn age 50 to make a withdrawal from the TSP without incurring a 10% early withdrawal penalty. The effective date of H.R. 2146 is December 31, 2015.

For additional details about this legislation and how it will work, also see Legislation Exempting Some Feds From Retirement Plan Withdrawal Penalty Gains Ground.

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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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