Spending Bill Extends Exemptions from TSP Withdrawal Penalty for Some Federal Employees

By on December 18, 2015 in Current Events with 10 Comments

In what has become an annual exercise, Congress passed a year-end tax and spending bill.  As always, many little changes were made to the tax laws and put in a section called “Miscellaneous Provisions”.

One such provision extends the “age 50 rule” for certain federal employees.

This past summer, Congress passed HR 2146, a bill that allowed federal Law Enforcement Officers, Firefighters, Customs and Border Protection Officers, and Air Traffic Controllers, beginning January 1, 2016, to make penalty free withdrawals from the TSP if they retired in their 50th year of birth.

Additional “special category employees” have been added to the above occupations and will also be able to make penalty free withdrawals in their 50th year of birth.

Those positions are:

  • Nuclear Materials Courier
  • Member of the U. S. Capitol Police
  • Member of the Supreme Court Police
  • Diplomatic Security Special Agent of the State Department

John Grobe’s latest book, The Answer Book on Your Federal Employee Benefits, has just been released by LRP Publications. The book is written in an easy to understand question and answer format and covers all areas of federal benefits from the perspective of an employee at various stages of their career. Order your copy at shoplrp.com.

© 2016 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

Tags:

About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.

Top