This bill helps federal employees access their retirement savings without penalties after leaving their jobs, making it easier for them to manage their finances during transitions.
If you are a federal employee leaving your job, you can access your retirement savings without penalties and manage your taxes better.
Who this affects
Federal employees
What changes is this bill making?
1This bill allows federal employees who leave their jobs to withdraw money from their Thrift Savings Plans without penalties.
2Employees can spread the taxable income from these withdrawals over three years.
3The total amount they can withdraw penalty-free is capped at $100,000.
4Individuals can repay the withdrawn amount to their retirement plans within three years.
5The bill applies to withdrawals made after January 20, 2025.
