Kim Weaver, director of external affairs at the Federal Retirement Thrift Investment Board, discusses upcoming options for partial TSP withdrawals, and what the board’s quarterly vendor risk assessment revealed.
The Thrift Saving Plan is looking to add flexibility to withdrawals. After lobbying Congress for an overhaul to the plan’s withdrawal rules, plan members will be able to take large sums of money out from their accounts more frequently. Kim Weaver, director of external affairs at the Federal Retirement Thrift Investment Board, says that the new withdrawal options are a significant change. “Right now, you only have the option to take out one partial withdrawal. That means If you take out $10,000 because you need a new roof, or you want to go on a vacation. That’s it, the only other choice you have is to take all of the money out of your TSP or start taking monthly payments. For most people, that’s not sufficient,” Weaver said. “So, you’ll now be able to take multiple partial withdrawals. You’ll be able to, Instead of taking monthly payments, you can take it quarterly or annually. Right now you can only adjust that amount once. In the future you’ll be able to adjust it as you need it.”