Federal Retirees Get a Break on TSP Withdrawal Rules

(Image credit: Daniel Bendjy)

published 1 February 2018

A new law will benefit federal employees and members of the military who want to keep their money in the low-cost Thrift Savings Plan when they retire. The TSP has low fees, but it has frustrated savers with its strict withdrawal rules: After you take one partial withdrawal, you can access the remaining balance only by cashing out the entire account, converting it to a life annuity, or taking a series of monthly payments that you can change only once a year.

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Features Starting A Family

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.