Thrift Savings Plan Emergency Withdrawal Act of 2025

This bill changes federal tax rules for withdrawals from the Thrift Savings Plan, the retirement savings plan for federal employees. It applies to withdrawals made by people who have left federal service, starting when they apply for a federal pension and ending one year after they receive their first regular pension payment. These withdrawals would not face the 10% early-withdrawal tax penalty, and the income could be spread over three tax years unless the person chooses otherwise. Each person could treat up to $100,000 this way, and could repay the money into an eligible retirement plan within three years. The rules would apply to withdrawals made after January 20, 2025.

Full text and official record on Congress.gov

Sponsors

• Eleanor Holmes Norton Democrat sponsor
• 0 cosponsors