TSP Modernization Act

119th Congress Introduced by Stephanie Bice and 19 co-sponsors

The bill would create an electronic system to transfer funds from Thrift Savings Plan accounts to qualified retirement plans, enabling rollovers and direct transfers.

Introduced in House

Summary of HR 9214 (Session 119)

Purpose and intent

HR 9214 seeks to enable the electronic transfer of certain amounts from Thrift Savings Plan (TSP) accounts to qualified retirement plans and related purposes. The bill aims to streamline and modernize how funds can be moved from TSP accounts into other qualified retirement arrangements, potentially expanding flexibility for participants to consolidate or roll over retirement assets electronically.

Key provisions and changes

Establishes a framework for the electronic transfer of funds from Thrift Savings Fund accounts.

Authorizes transfers to qualified retirement plans. This could include rollovers or direct transfers, subject to compliance with applicable tax and retirement security regulations.

Addresses related administrative and procedural requirements to facilitate electronic transfers (e.g., notices, timing, verification, and recordkeeping).

Provides the authority or mechanism for federal or program-wide implementation, including coordination with TSP administrators and participating retirement plans.

Contains definitions and scope to ensure transfers meet the standards for qualified retirement plans and do not jeopardize participant protections.

Who/what would be affected

Participants and beneficiaries with Thrift Savings Plan accounts who wish to move funds to other qualified retirement plans.

Qualified retirement plans that receive direct transfers or rollovers from TSP accounts.

TSP program administrators and participating retirement plan providers, which would implement the electronic transfer process.

Federal employees and annuitants who are current or former TSP account holders, though the bill’s reach is limited to transfers to qualified plans.

Procedural and timeline aspects

The bill has been introduced and referred to the House Committee on Oversight and Government Reform as of June 9, 2026.

It outlines a procedural pathway for developing, approving, and implementing the electronic transfer mechanism, likely including rulemaking, timelines for implementation, and compliance reviews.

Specific dates for effective implementation, transition periods, and any phased rollout are not provided in the summary, but would typically be established through committee adoption and subsequent regulatory action.

Additional context

The bill has a broad list of co-sponsors, signaling cross-cutting interest in retirement security and modernization of federal retirement tools.

As introduced and referred, the bill represents a procedural framework proposal; detailed regulatory provisions (e.g., transfer limits, tax implications, protections against improper transfers) would be clarified in committee markup and any accompanying regulatory language.

If you’d like, I can pull and summarize the bill’s text for more precise details on transfer mechanics, eligibility, limitations, and any fiscal implications.