Implementing the TSP Modernization Act of 2017 (TSPMA) is easier said than done. The changes to Thrift Savings Plan withdrawals require a multitude of changes to forms, publications, fact sheets and website content. Throughout the lead-up to the change, the TSP has been working in the background to ensure that, on September 15th, all of the “old” information is no longer available and all of the “new” information is ready for TSP participants who are ready to make withdrawals.
In the lead-in to the change, the Thrift Board declared a “dead zone” from September 7 through September 14 where no new withdrawal requests would be accepted. Nevertheless, they left all of the “old” forms and publications up on the website. Beginning on Monday, September 9th, we checked the TSP website every day to see if the new forms and publications had been posted. Finally, when I checked on Monday morning, September 16th, everything had changed and the new forms and publications were available.
You will probably want to go to the TSP website and download or print the new Summary of the Thrift Savings Plan. This publication tells you everything you need to know about the TSP and should be your first source of reference whenever you have a question.
You will no longer find paper withdrawal forms of any type in the forms sub-section of the withdrawals section of the site. There are online forms available for those who want to make a withdrawal or change their current method of withdrawal.
You will have to access your Thrift Savings Plan account and access an online withdrawal tool for withdrawals.
The TSP-99, Withdrawal Request for Separated and Beneficiary Participants will be the place to go for those who are separated and want to start the withdrawal process. You will also find the TSP-75, Age-Based In-Service “59½” Withdrawal Request and the TSP-76, Financial Hardship In-Service Withdrawal Request for in-service withdrawals, along with the TSP-95, Changes to Installment Payments for those who are separated and already taking installment payments from the TSP. We have already assisted a handful of clients to get the process started.
If you are a FERS participant, whether you are retired or still employed, spousal consent is necessary for almost all actions that deal with withdrawals. You will find yourself answering a lot of questions online and will come to a point where you are directed to print out the appropriate form, fill in any additional needed information and obtain your spouses signed, notarized consent. You will then have to mail or fax the completed form to the Thrift Savings Plan. I went through the steps needed to take a “partial single withdrawal” and the process was easy and intuitive, but will help guide you through this process.
Though the old forms and publications are no longer on the website, no doubt there are hard copies floating around. If you’ll be withdrawing from the TSP in the near future, remember that the withdrawal process must start online; do not use an old paper publication. If you have any questions, or want to have a retirement review, and let us help advise your best action within your TSP, please schedule your review today. Contact us today!