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The Federal Retirement Thrift Investment Board announced a permanent rule change on starting and restarting installment payments based on life expectancy for Thrift Savings Plan (TSP) participants.
Beginning in January 2021, all TSP participants eligible for installment payments may elect to receive payments based on life expectancy whether or not they previously started and then stopped installment payments. This means that if you are currently receiving life-expectancy payments, you may now stop them, knowing that you will be able to restart them next year.
This is a significant rule change, especially for those receiving required minimum distributions (RMDs) and want to temporarily suspend those payments while RMDs are waived in 2020.
Read more, and learn how to adjust your payments, here.