The TSP Modernization Act has finally arrived. 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. These provisions came into effect on September 15, 2019.
TSP investors haven’t wasted any time in taking advantage of these new rules. There about 5,000 distribution requests in the hopper at the moment.
It’s not clear whether the avalanche of new requests is a show of accumulated demand or just that participants are willing to explore the new rules. But the number of requests is likely to continue at this rate for the foreseeable future.
The act has given the Federal Retirement Thrift Investment Board until November of 2019 to make the necessary changes in order to facilitate the new rules.