In the midst of all the musical chairs at the White House and wrangling over healthcare on the Hill, a piece of legislation has been introduced that will be a big plus for Federal retirees.
The TSP Modernization Act of 2017 (H.R.3031 in the House and S.873 in the Senate) is designed to give Federal retirees expanded options for withdrawing money from TSP. Highlights include:
- Multiple age based withdrawals
- Ability to change the timing and amount of regular payments
For more details on what this legislation could mean to you, checkout this GovExec article.
Keep your eye on this. If it passes, it could add much needed flexibility in how you can withdraw your TSP funds in retirement. The Federal Retirement Thrift Investment Board (FRTIB) is looking at lots of ways to entice TSP account holders to keep funds in TSP after retirement, rather than you rolling your funds over into an outside 401k. What would keep me in the TSP after retirement is the ability to reallocate more often (back to daily would be ideal..).