While many private-sector workers build their nest eggs through 401(k) plans, federal employees and members of the uniformed services have their own retirement savings and investment plan. This is called the Thrift Savings Plan (TSP).
With more than 5 million participants and close to $500 billion in assets, the TSP is recognized as the largest defined-contribution retirement plan in the world.
The TSP Modernization Act provisions went into effect on September 15, 2019. With it comes a host of new rules designed to give plan participants more freedom with taking distributions from their TSP accounts.
The new provisions have greatly expanded the withdrawal options that are available to TSP retirement savers under various circumstances.
TSP investors haven’t wasted any time in taking advantage of these new rules. In the weeks following the release of the new rules, there were about 5,000 distribution requests in the hopper.