# 119-hr-6929: Thrift Savings Plan Emergency Withdrawal Act of 2025

119-hr-6929, Thrift Savings Plan Emergency Withdrawal Act of 2025, is a 119th Congress bill sponsored by Del. Norton, Eleanor Holmes [D-DC-At Large] (D-DC); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-6929
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-6929
- Congress: 119
- Title: Thrift Savings Plan Emergency Withdrawal Act of 2025
- Status: introduced
- Introduced: 2025-12-23
- Sponsor: Del. Norton, Eleanor Holmes [D-DC-At Large] (D-DC)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Penalty-free emergency withdrawals from the Thrift Savings Plan for separated federal employees.** This bill would let federal workers who leave service take limited, penalty-free distributions from their Thrift Savings Plan and give them a short window to roll the money back. - Separated federal employees can take up to $100,000 from their TSP without the usual 10 percent early withdrawal tax, and those amounts are included in gross income spread evenly over 3 years. - Recipients may elect within 1 year to treat the payout as an eligible rollover and may repay up to the distributed amount to an eligible retirement plan during a 3-year period; repayments must be made by direct trustee-to-trustee transfer and involve specific rollover rules. - Tax treatment changes: the distribution avoids the 10 percent additional tax under section 72(t) but is not treated as an eligible rollover distribution for certain tax-code sections (401(a)(31), 402(f), and 3405).

## Provisions PRIA read

- Penalty-free Thrift Savings withdrawals for federal retirees: benefit, high. If enacted, this bill would let certain former federal employees take distributions from their Thrift Savings Plan without the 10% early-withdrawal tax. Up to $100,000 of such distributions could get this treatment. Unless you opt out for a taxable year, the taxable amount would be spread evenly ov…

## Related bills

- 119-hr-9877: Health Equity and Accountability Act of 2026
- 119-hr-8870: BUILD America 250 Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-10421: Transforming Education for the Future Act
- 119-hr-6900: American Affordability Act of 2025
- 119-hr-4669: FEMA Act of 2025

## Sources
- [119-hr-6929 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/6929)

## Related
- [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877)
- [119-hr-8870: BUILD America 250 Act](https://policyrisk.com/legislation/119-hr-8870)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-10421: Transforming Education for the Future Act](https://policyrisk.com/legislation/119-hr-10421)
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-6929 (as of 2026-04-21).