TSP Act

Bill 118 hr 3455, also known as the TSP Act, is a piece of legislation currently being considered by the US Congress. The TSP Act aims to reform the Thrift Savings Plan (TSP), which is a retirement savings plan for federal employees and members of the uniformed services.

The main goal of the TSP Act is to provide participants in the TSP with more flexibility and control over their retirement savings. One of the key provisions of the bill is to allow participants to make multiple partial withdrawals from their TSP accounts after they reach the age of 59 and a half. Currently, participants are only allowed to make one partial withdrawal from their TSP account after they reach this age.

Additionally, the TSP Act would allow participants to make withdrawals from their TSP accounts while still employed, as long as they are over the age of 59 and a half. This would give participants more options for accessing their retirement savings when they need them. The TSP Act also includes provisions to streamline the TSP withdrawal process and make it easier for participants to manage their accounts. This includes simplifying the paperwork required for withdrawals and providing more online tools and resources for participants to track and manage their TSP accounts. Overall, the TSP Act aims to modernize and improve the TSP program to better meet the needs of federal employees and members of the uniformed services. It is currently being considered by Congress and may undergo further revisions before being voted on.