Categories: Fedweek

End to Required Withdrawals Proposed

Current requirements for making withdrawals from retirement savings programs such as the Thrift Savings Plan would be repealed under legislation (HR-315) offered by Rep. Jim Saxton, R-N.J. Current policy requires “minimum distributions” from the TSP and similar plans in the year after the individual turns age 70 1/2. Saxton and other opponents of the provision argue that the requirement forces participants to make withdrawals when they might not need or want to, such as after investment losses. The proposal could become part of a tax reform measure to be considered in Congress this year.

FEDweek Newsletter
Veteran insight on your federal pay, benefits, career and retirement!
Share