About 75,000 retired Thrift Savings Plan participants who are at least 70.5 years of age will be able to waive or reduce their required withdrawals in 2009.

TSP participants who leave federal service usually are required to start making regular withdrawals from their account balances after they turn 70.5.

But last year, Congress passed a law to suspend that requirement for a year for all IRA or 401(k)-type programs. The law was meant to ease the impact of the economic downturn on retired people who might have to cash in retirement savings investments at a loss to satisfy the withdrawal requirements.

The Federal Retirement Thrift Investment Board, which governs TSP, said Jan. 15 that TSP participants who are already receiving monthly payments will be able to reduce them to as little as $25 per month.

Participants who turned 70.5 in 2008 will not be required to make withdrawals from their retirement investments in 2009.

The requirement for the withdrawals, called minimum distribution payments, is set to return in 2010.

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