Thrift Savings Plans are subject to IRS Levy

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Have a thrift savings plan with the government?  Running behind on your taxes?  Bad news, President Obama just signed a bill that specifically allows the IRS to levy (fancy legal talk for take away) your thrift savings plan.

There really isn’t much to the bill, just adding a clause to pre existing law that thrift savings plans are subject to IRS levy. ┬áPresumably, just as with other retirement plans, you have to be in pay status in order for the IRS to levy on your retirement plan.

I’m sure this will be a bit distorted by some of the fringe elements to reinforce their belief that the government is going to either confiscate everyone’s retirement plans or will force them to invest in tbills (pretty much the same thing return wise).