TSP Withdrawal Penalty Exempted for Some Federal Employees

Thrift Savings Plan TSPThe Congress has always been making ready changes in the way things are done in our country and especially our government. As every year, the law-forming people of Congress approved a year-end spending and tax bill recently. It wasn’t a surprise when there were only a small amount of changes made to the laws concerning taxing and they were put in the “Miscellaneous Provisions” section.

TSP withdrawal penalty exempted:

A provision that was highlighted a lot in the recent weeks was regarding TSP and it was an extension made to the “Age 50” rule that is currently in place for some of the TSPinvolved federal employees.

HR 2146 is the name of the bill that was passed during summer of last year and it exempted some of the federal employees majorly the fire fighters, law enforcement officers, air traffic controllers and the customs and border protection officers to withdraw from their TSP accounts without having to bear with any penalty. This practice was expected to start from the 1st of January 2016 and this was only applicable to those of the employees that have retired aged 50.

In this year’s bill, there have been some other additions to the exceptions and there will be more people that would be able to make tax and penalty free withdrawals if of course they retire within their 50th year of coming to the world.

 

The above talked about positions are:

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

 

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