New Thrift Savings Plan Distribution Regulations

Starting in September of 2019 year, OPM unveiled its New TSP distribution regulations as mandated by the TSP Modernization Act of 2017.  These rules new regulations are a long time coming and will provide many retiree’s some relief in using their assets. (for our ‘Grade’ on the new rules, click here)

We’ve out together a summary of the major highlights on the new rules.  For an entire list of the new regulations, please visit


You can now start, stop, change the monthly withdrawals at any time.

Before, you had to wait to open season and then the change would remain for the entire calendar year. If you’re receiving monthly payments, you can only change the amount of those payments during an open season between October 1 and December 15. Now, you’ll be able to change the amount and frequency (monthly, quarterly, annual) of your installment payments—and change from life-expectancy payments to a fixed dollar amount2 —at any time throughout the year.

You can take multiple partial withdrawals

There will be no limit to the number of partial withdrawals you can take. Before, you could only make one such withdrawal in your life time. The only restriction is that withdrawals can only be made every 30 days, so you just need to have at least 30 days between withdrawals.

Ability to take multiple age-based in-service withdrawals or rollovers whole employed

As long as you are over 59/12, you can take multiple age-based withdrawals (or rollovers) Before, you could only make one such withdrawal

Choose Your tax strategy, Roth or Traditional

You’ll be able to choose whether your withdrawal should come from your Roth balance, your traditional balance, or a proportional mix of both

No more Age 70 ½ deadline

There no longer is a withdrawal deadline. Previously, the law required that you make a full withdrawal election once you turned 701/2 and were separated from federal service. If you failed to do that, we would initiate an account “abandonment” process. The new law does away with this requirement. You will never be required to make a full withdrawal election, and we will no longer abandon accounts as we have in years past.



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* Source: Pew Research Center
† Source: “Quantitative Analysis of Investor Behavior, 2014” Dalbar Inc. Most recent data available. An index is un-managed and one cannot invest directly into an index.

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