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There are new forms and online tools for Thrift Savings Plan participants now that the new withdrawal rules are in effect.
A new TSP Bulletin provides a list of the replacement forms. The bulletin also provides instructions for requesting a withdrawal through TSP’s online tools.
NTEU pressed for passage of the TSP Modernization Act, signed into law in 2017, to give TSP account holders more flexibility and better withdrawal options.
Here’s what’s new:
All TSP participants can now take one withdrawal every 30 days.
Active federal employees age 59½ or older can take up to four partial withdrawals from the TSP during a calendar year. However, the 30-day limit still applies.
Those who have left federal service will have no other limitations beyond the 30-day requirement to make partial TSP withdrawals.
TSP participants who received a financial hardship in-service withdrawal and are suspended from contributing to the TSP can restart TSP contributions even though they may not have completed the six-month suspension period. TSP will send these participants a notice alerting them that they can resume contributions.
Learn more