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 Post subject: Modernization Act Rules
 Post Posted: Fri Feb 01, 2019 11:46 am 
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Joined: Apr 22, 2013
Posts: 18
Flag: United States (us)
Risk Tolerence: Medium

Reputation point: 10
With everything I have read and still being tight lipped about the Modernization Act I am beginning to believe it might not be as great as I thought. Post separation now you are allowed a one time partial withdrawal (form TSP-77). The Modernization Act is implying you will be allowed more than one partial withdrawal in which I was believing those getting life expectancy payments would just be allowed to fill out an additional or new TSP-77 and leave the rest in the life expectancy category thus still receiving your monthly payments penalty free but taxed of course. From reading press releases I am beginning to believe that the way you obtain your partial withdrawal is by changing the monthly withdrawal amount from say $1000/mo(life expectancy) to say $20,000/mo(to get a partial w/d) then back to the $1000/mo normal the next month, thus getting your partial withdrawal. But by doing this it will hurt those under 59.5 on life expectancy. Once you go from life expectancy payments to a specified amount you would be converting from life expecancy unable to go back to life expectancy thus making all your monthly payments penalized from here on out. If this is the case be aware and also crude trick by Uncle Sam to get penalties. If this is also the case then to get a second partial withdrawal I am considering a full withdrawal to set up a SEPP or 72t to keep my monthly payments coming penalty free and pulling my partial payment myself before setup. If anyone has heard or read anything different about the more than one withdrawal for life expectancy people please let me know because I am wanting to set up the 72t soon for I am 54 now and want to beat the 5 year rule by 59.5.


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AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)

S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)

DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)

EFA (I Fund)
iShares MSCI EAFE Index (EFA)