Thrift Savings Plan Modernization Act - Wiki updates needed

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LadyGeek
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Thrift Savings Plan Modernization Act - Wiki updates needed

Post by LadyGeek »

The newly enacted legislation (see: TSP Modernization Act Signed Into Law) means that our wiki pages are out of date.

The following wiki pages have been tagged with "This article's factual accuracy may be compromised due to out-of-date information."

- Thrift Savings Plan
- TSP and 401(k) contrasts
- TSP transfers and rollovers
- TSP withdrawals

Can someone please review what changed and provide updates (if needed)?
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hoppy08520
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Re: Thrift Savings Plan Modernization Act - Wiki updates needed

Post by hoppy08520 »

If someone hasn't already done so, I can do it, but it will take a few days...

We will need to leave some "pending" sort of language given that the new options aren't actually implemented and in place yet. Perhaps in the relevant sections of those pages, we will reference the fact that these changes are pending and that the wiki pages/sections are in flux and will be updated as changes happen.
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TimeRunner
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Re: Thrift Savings Plan Modernization Act - Wiki updates needed

Post by TimeRunner »

This is the language from the TSP "What's New" web page:

"TSP Withdrawal Options Bill Becomes Law — (November 20, 2017) On November 17, 2017, President Trump signed into law the TSP Modernization Act of 2017, which will provide TSP participants with more flexible withdrawal options. The law eliminates the statutory prohibition on multiple post-separation withdrawals and multiple age-based withdrawals while a participant is still working. It also removes the restriction that participants cannot take partial post-separation withdrawals if they’ve already taken an age-based in-service withdrawal. Though it has no effect on required minimum distributions mandated by the Internal Revenue Code, the law also allows separated participants who are over age 70½ to remain in the TSP, eliminating the requirement to make a withdrawal election on an entire account balance. Participants will also be able to stop monthly payments, change payment frequency, or elect to purchase an annuity while receiving monthly payments.
The Executive Director of the FRTIB has the authority to establish parameters regarding this new ability to take multiple withdrawals, and the law gives the FRTIB up to two years to make the regulatory and operational changes necessary to enact these changes."

https://www.tsp.gov/whatsnew/Content/in ... drawalbill
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hoppy08520
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Re: Thrift Savings Plan Modernization Act - Wiki updates needed

Post by hoppy08520 »

FYI to those of you following this. I believe the various TSP pages have been updated. When the actual changes to the TSP are in place (it could take some time), further updates will likely be needed depending on how much detail we want to add to the various pages.
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