NATCA Benefits: Important Changes to FERS TSP Withdrawal Laws
NATCA Benefits presents breaking news: Important changes have been made to Special Category Employee (SCE) Federal Employees Retirement System (FERS) on Retirement and Thrift Savings Plan (TSP) withdrawals.
If you retire under the Special Category Employee (SCE) Federal Employees Retirement System (FERS) provisions, you are now eligible to receive penalty free Traditional (not Roth) Thrift Savings Plan (TSP) withdrawals regardless of age. In the new spending bill that passed on Dec. 23, 2022 (H.R. 4373), the rule for all SCEs to withdraw penalty-free from TSP is no longer “work into the year you turn 50.” The new law has no “Age 50” threshold, and you may retire in the year you turn 50, not the exact date you turn 50.
If you have any questions pertaining to this news, or want any assistance financially, reach out to Cambridge Financial. They’re a team of financial advisors across the United States with decades of experience to help NATCA members work towards their maximum financial potential over time, whether you’re just a few years from retirement or straight out of the FAA Academy. You can download a poster here with details on this benefit to display in the NATCA office at your facility.