Lets federal employees withdraw TSP funds without penalty and spread out taxes.
This bill would let federal employees who are leaving their jobs take money out of their Thrift Savings Plans (TSP) without paying an extra 10% penalty. They could also spread out the income taxes on up to $100,000 of that money over three years. This changes current rules that typically charge a penalty for early withdrawals and require all taxes to be paid in one year.
Today, federal employees who withdraw money from their Thrift Savings Plans before age 59½ typically face a 10% early withdrawal penalty and must pay all income taxes on the amount in one year. This bill would let eligible federal employees leaving service withdraw up to $100,000 without the 10% penalty and spread the income tax payments over three years.
HR 6929 · 119th Congress · AI Summary by gemini-2.5-flash · 10/10
Sign in to see your representatives' phone numbers
3 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.