83 FR 47547 - Tax Withholding on Court Ordered Payments

FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

Federal Register Volume 83, Issue 183 (September 20, 2018)

This rule deletes regulatory language that provides for the Federal income tax withholding rates on court ordered payments from the Thrift Savings Plan.

[Federal Register Volume 83, Number 183 (Thursday, September 20, 2018)]
[Rules and Regulations]
[Pages 47547-47548]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20471]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / 
Rules and Regulations

[[Page 47547]]



FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1653


Tax Withholding on Court Ordered Payments

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: This rule deletes regulatory language that provides for the 
Federal income tax withholding rates on court ordered payments from the 
Thrift Savings Plan.

DATES: This rule is effective without further action on October 22, 
2018, unless significant adverse comment is received by October 15, 
2018. If significant adverse comment is received, the FRTIB will 
publish a timely withdrawal of the rule in the Federal Register.

ADDRESSES: You may submit comments using one of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Office of General Counsel, Attn: Megan G. Grumbine, 
Federal Retirement Thrift Investment Board, 77 K Street NE, Suite 1000, 
Washington, DC 20002.
     Hand Delivery/Courier: The address for sending comments by 
hand delivery or courier is the same as that for submitting comments by 
mail.
     Facsimile: Comments may be submitted by facsimile at (202) 
942-1676.
    The most helpful comments explain the reason for any recommended 
change and include data, information, and the authority that supports 
the recommended change.

FOR FURTHER INFORMATION CONTACT: Laurissa Stokes at (202) 942-1645.

SUPPLEMENTARY INFORMATION: The FRTIB administers the Thrift Savings 
Plan (TSP), which was established by the Federal Employees' Retirement 
System Act of 1986 (FERSA), Public Law 99-335, 100 Stat. 514. The TSP 
provisions of FERSA are codified, as amended, largely at 5 U.S.C. 8351 
and 8401-79. The TSP is a tax-deferred retirement savings plan for 
Federal civilian employees and members of the uniformed services. The 
TSP is similar to cash or deferred arrangements established for 
private-sector employees under section 401(k) of the Internal Revenue 
Code (26 U.S.C. 401(k)).
    Currently, paragraph (e) of 5 CFR 1635.5 specifies the person to 
whom a court ordered payment from the TSP may be made and, in addition, 
specifies the Federal income tax withholding rates on such payments. 
This rule deletes the language that specifies the Federal income tax 
withholding rates on court ordered TSP payments.
    The Federal income tax withholding rates on all TSP payments are 
dictated by the Internal Revenue Code. As such, any FRTIB regulatory 
language that expresses the withholding rates are, at best, duplicative 
of the Internal Revenue Code. The Federal income tax withholding rates 
required by the Internal Revenue Code are more appropriately 
communicated to participants and beneficiaries via the TSP website or 
via forms and publications provided directly to them.

Type of Rulemaking

    In a direct final rulemaking, an agency publishes a direct final 
rule in the Federal Register along with a statement that the rule will 
become effective unless the agency receives significant adverse comment 
within a specified period. The FRTIB is using a direct final rule for 
this rulemaking because it expects this regulation to be 
noncontroversial. The FRTIB will withdraw the rule if it receives 
significant adverse comment. Comments that are not adverse may be 
considered for modifications to part 1653 at a future date. If no 
significant adverse comment is received, the rule will become effective 
without additional action.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities. This regulation will 
affect Federal employees and members of the uniformed services who 
participate in the Thrift Savings Plan, which is a Federal defined 
contribution retirement savings plan created under the Federal 
Employees' Retirement System Act of 1986 (FERSA), Public Law 99-335, 
100 Stat. 514, and which is administered by the FRTIB.

Paperwork Reduction Act

    I certify that these regulations do not require additional 
reporting under the criteria of the Paperwork Reduction Act.

Unfunded Mandates Reform Act of 1995

    Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 602, 
632, 653, 1501-1571, the effects of this regulation on state, local, 
and tribal governments and the private sector have been assessed. This 
regulation will not compel the expenditure in any one year of $100 
million or more by state, local, and tribal governments, in the 
aggregate, or by the private sector. Therefore, a statement under 
section 1532 is not required.

Submission to Congress and the General Accounting Office

    Pursuant to 5 U.S.C. 810(a)(1)(A), the Agency submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives, and the Comptroller General of the 
United States before publication of this rule in the Federal Register. 
This rule is not a major rule as defined at 5 U.S.C. 814(2).

List of Subjects in 5 CFR Part 1653

    Alimony, Child support, Government employees, Pensions, Retirement.

Ravindra Deo,
Executive Director, Federal Retirement Thrift Investment Board.

    For the reasons stated in the preamble, the Agency amends 5 CFR 
chapter VI as follows:

PART 1653--COURT ORDERS AND LEGAL PROCESSES AFFECTING THRIFT 
SAVINGS PLAN ACCOUNTS

0
1. The authority citation for part 1653 continues to read as follows:

    Authority: 5 U.S.C. 8432d, 8435, 8436(b), 8437(e), 8439(a)(3), 
8467, 8474(b)(5) and 8474(c)(1).


0
2. Amend Sec.  1653.5 by revising paragraph (e) to read as follows:


Sec.  1653.5  Payment.

* * * * *

[[Page 47548]]

    (e) Payment will be made only to the person or persons specified in 
the court order. However, if the court order specifies a third-party 
mailing address for the payment, the TSP will mail to the address 
specified any portion of the payment that is not transferred to a 
traditional IRA, Roth IRA, or eligible employer plan.
* * * * *
[FR Doc. 2018-20471 Filed 9-19-18; 8:45 am]
BILLING CODE 6760-01-P