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Thrift Savings Plan Emergency Withdrawal Act of 2025

This bill allows former federal employees to withdraw up to $100,000 from their Thrift Savings Plan (TSP) without paying early withdrawal penalties. It also lets them spread the resulting income tax over three years to ease the financial transition after leaving service.
Key points
No 10% penalty for early TSP withdrawals after leaving federal service.
Income tax on withdrawals can be paid ratably over a three-year period.
The aggregate withdrawal amount is capped at $100,000.
Option to repay the funds into a retirement account within three years to maintain savings.
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Status: Introduced
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Additional Information
Print number: 119_HR_6929
Sponsor: Del. Norton, Eleanor Holmes [D-DC-At Large]
Process start date: 2025-12-23
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Thrift Savings Plan Emergency Withdrawal Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6929.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-12-23.

What are the main provisions?

Key points include:

  • No 10% penalty for early TSP withdrawals after leaving federal service.
  • Income tax on withdrawals can be paid ratably over a three-year period.
  • The aggregate withdrawal amount is capped at $100,000.
  • Option to repay the funds into a retirement account within three years to maintain savings.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Del. Norton, Eleanor Holmes [D-DC-At Large].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-03-05.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

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