Recent Changes in the Thrift Savings Plan
There have been a few upgrades in the Thrift Savings Plan (TSP). They include:
Online Password Reset
You can now reset your password online. First you have to validate your contact information (such as an email address or a mobile number) in the My Account portion of the webpage.
Once you validate, you can use that contact information to reset your password. Go to the My Account section, click on “Forgot your password?,” and follow the prompts to reset it.
The TSP Modernization Bill
On November 17, 2017, President Trump signed into law the TSP Modernization Act of 2017, which will provide more flexible withdrawal options. The law gives the TSP up to two years to establish parameters and to make the necessary regulatory and operational changes.
You can read the TSP fact sheet, Questions and Answers About Changes to TSP Withdrawal Options, for more detailed information on the bill. If you just want to know the bottom line as I see it, here it is:
- It will take up to two years for the changes to be available.
- They’re adding the ability to specify how much of your withdrawal should be Roth and how much should be traditional; withdrawals currently come out proportionally from both sources.
- Other than that, it is not clear what additional changes may occur.
- If you have an account balance when the new rules go into effect, even if you’ve begun receiving monthly payments or have taken a partial withdrawal before then, you will be able to take advantage of the new withdrawal options.