Thrift Savings Plan Emergency Withdrawal Act of 2025

# Thrift Savings Plan Emergency Withdrawal Act of 2025 - Summary **What the Bill Would Do:** This bill would allow federal employees and military service members to make emergency withdrawals from their Thrift Savings Plan (TSP) accounts without the usual penalties and restrictions. The TSP is a retirement savings plan similar to a 401(k) that federal workers contribute to during their careers. Currently, early withdrawals before retirement age typically come with significant penalties and taxes.

If passed, this legislation would create exceptions for financial emergencies, making it easier for eligible account holders to access their retirement savings during hardship situations. **Who It Affects:** The bill primarily impacts federal civilian employees and active-duty military members who have TSP accounts. This could potentially include millions of workers across the federal government and armed services who rely on the TSP as part of their retirement planning. **Current Status:** As of now, the bill (HR 6929) has been introduced in the House of Representatives by Representative Eleanor Holmes Norton (D-DC) and remains in committee, meaning it has not yet been debated or voted on by the full House. The bill has not advanced to become law.