Thrift Savings Plan Emergency Withdrawal Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6929 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6929 To amend the Internal Revenue Code of 1986 to allow Federal employees who are separated from Federal service to make penalty-free distributions from Thrift Savings Plans and include such distributions in gross income over 3 years. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 23, 2025 Ms. Norton introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to allow Federal employees who are separated from Federal service to make penalty-free distributions from Thrift Savings Plans and include such distributions in gross income over 3 years. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Thrift Savings Plan Emergency Withdrawal Act of 2025''. SEC. 2. TAX-FAVORED WITHDRAWALS FROM THRIFT SAVINGS PLAN FOLLOWING SEPARATION FROM FEDERAL SERVICE. (a) In General.--In the case of a qualified civil service separation distribution-- (1) section 72(t) of the Internal Revenue Code of 1986 shall not apply, and (2) unless the taxpayer elects not to have this paragraph apply for any taxable year, the amount of any such distribution otherwise required to be included in gross income for such taxable year shall be included in gross income ratably over the 3-taxable-year period beginning with such taxable year. (b) Limitation.--The aggregate amount which may be treated as a qualified civil service separation distribution by any individual shall not exceed $100,000. (c) Amount Distributed May Be Repaid.-- (1) In general.--Any individual who receives a qualified civil service separation distribution ma