The Thrift Savings Plan has provided some new information on the status of implementing the TSP Modernization Act, a new law that was recently passed that will give federal employees more withdrawal options.
One question we have been asked frequently since this law was passed is, “When can I start taking the additional withdrawals from my TSP account?”
According to the TSP, these changes are coming in September 2019. The TSP has also provided a fact sheet with frequently asked questions about the TSP Modernization Act and the implantation of the changes.
Among other things, it notes that federal employees can continue to have the same withdrawal options that they had before the law was passed.
The fact sheet also notes that the TSP has been working on implementing the changes before the law was passed, but adds, “it would have been inefficient to spend the substantial resources necessary for this project before knowing whether the bill would become law or what exactly would be included in it. We were as prepared as we could prudently be for the passage of the law and are working to make this transition as quickly as possible while ensuring that the processes work correctly and in the best interest of our participants.”
We will continue to provide you with new information on the changes from the new law as it becomes available.
