Fednobabble - Making Federal Benefits Understandable for Humans (in under 20 minutes) This episode covers What is in the new TSP and what is not. To get a comprehensive report on your federal retirement benefits: No cost, no obligation, no sales pitch. No kidding. Want us to ask a question for us to answer? again. Created by: Kevin Jones of and Cassie Knight of ...(read more)
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The Thrift Savings Plan, commonly known as TSP, has undergone some changes as part of the TSP Modernization Act. These revisions, which are effective as of September 15, 2019, have the aim of making it easier for federal employees to use their TSP accounts. What's in it? One of the most significant changes is the removal of some of the limitations that prevented participants from accessing their funds while still employed. For instance, the new law allows for multiple age-based in-service withdrawals after age 59 ½. This means that you may withdraw your TSP benefits in installments, provided you meet the relevant criteria. Another significant change involves how to make withdrawals. The new rules permit for multiple partial withdrawals after separation, with the omission of required minimum distributions (RMDs). Therefore, you're not in any critical rush to take the required amount if you don't need it immediately. Additionally, a mixture of both traditional and Roth contributions is now authorized when investing through TSP, thereby giving you added flexibility in your investments. Previously, the only mixed contribution option was when transferring a balance to or from a prior 401(k) plan. What's not in it? While the TSP Modernization Act represents significant progress towards greater flexibility and control over TSP funds, some additional adjustments to the program are yet to be made. The Act largely focused on in-service withdrawals and RMDs. However, it made no changes to the annuity rules or what defined the right annuity provider. This means that the TSP's limitations remain unchanged for participants who wish to purchase an annuity. Furthermore, under the Act, there were no new investment alternatives added to the TSP fund menu. Although there has been discussion on including a Real Estate Investment Trust (REIT), it's yet to be included. Thus, participants may have to wait longer for new investment opportunities to become available. Conclusion The changes to TSP under the Modernization Act are a significant step forward in empowering federal employees in planning their finances. The expansions now allow more flexibility in withdrawals, greater control over investments, and provide added incentives for contributors. Although additional reforms may still be necessary, the new adjustments go a long way in empowering TSP contributors. https://inflationprotection.org/the-new-tsp-what-is-in-it-what-is-not/?feed_id=76581&_unique_id=640750b13d11a #Inflation #Retirement #GoldIRA #Wealth #Investing #csrs #federalbenefits #federalgovernment #federalretirement #fegli #FERS #fltcip #Medicare #socialsecurity #Survivorbenefits #ThiftSavingsPlan #tsp #ThriftSavingsPlan #csrs #federalbenefits #federalgovernment #federalretirement #fegli #FERS #fltcip #Medicare #socialsecurity #Survivorbenefits #ThiftSavingsPlan #tsp
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