Thrift Savings Plan Guidance for Federal Furlough

Great News!

It’s going to take a while, but the Thrift Savings Plan has approval to move forward with slacking the noose of rules around TSP Withdrawals.

It will require congressional approval (meaning it may take years to implement), but this is definitely a critical step that starts the journey of fixing the TSP’s restrictive withdrawal rules.  This- more than any other factor- Is what moves retiring or separating Feds to perform a ‘Full Withdrawal’ of their TSP funds.

Bottom Line:  For those current or separated Feds with any skin in the TSP, it means you will soon be able to use the greatest short-term investment on the planet for current income in retirement.

You can read the actual memo here (h/t to

For more reading about the restrictions on TSP Withdrawals under current rules, here’s some further reading:

The TSP’s Fatal Flaw

4 Ways to take Partial Withdrawals from the TSP

Take Charge of  your TSP at Separation

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