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.

Rules and Regulations Federal Register

74329 

Vol. 88, No. 209 

Tuesday, October 31, 2023 

FEDERAL RETIREMENT THRIFT 

INVESTMENT BOARD 

5 CFR Part 1650 

Elimination of Mandatory Roth 

Distributions 

AGENCY: Federal Retirement Thrift 

Investment Board. 

ACTION: Direct final rule. 

SUMMARY: This direct final rule makes 

technical conforming revisions 

necessary to implement statutory 

amendments made by the SECURE 2.0 

Act of 2022. Specifically, it eliminates 

the requirement to take mandatory Roth 

distributions. 

DATES: This rule is effective on January 

1, 2024, unless significant adverse 

comment is received by December 15, 

2023. 

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: Dharmesh Vashee, Federal 

Retirement Thrift Investment Board, 77 

K Street NE, Suite 1000, Washington, 

DC 20002. 

FOR FURTHER INFORMATION CONTACT: For 

press inquiries: contact Kim Weaver at 

(202) 942–1641. For information about 

commenting on this rule: contact Magali 

Matarazzi at (202) 805–2823. 

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)). 

Background 

The Internal Revenue Code requires 

TSP participants to receive a portion of 

their TSP account (‘‘required minimum 

distribution’’) beginning when they 

reach a specific age and are separated 

from service. Currently, a participant’s 

entire TSP account—both traditional 

and Roth—is subject to the required 

minimum distribution rules of the 

Internal Revenue Code. If a separated 

participant does not withdraw from his 

or her account an amount sufficient to 

satisfy his or her required minimum 

distribution for the year, FRTIB 

regulations provide that the TSP record 

keeper will automatically distribute the 

necessary amount pro rata from the 

participant’s traditional balance and the 

participant’s Roth balance. 

Section 325 of the SECURE 2.0 Act of 

2022, which was included in Division T 

of the Consolidation Appropriation Act, 

2023 (Pub. L. 117–328), amended the 

Internal Revenue Code to eliminate the 

requirement to take mandatory Roth 

distributions. To conform FRTIB 

regulations to this statutory amendment, 

this rule will delete the provision of 

FRTIB regulations that says the TSP 

record keeper will distribute required 

minimum distributions pro rata from 

traditional balances and Roth balances. 

Direct Final Rulemaking 

A direct final rule is a final rule that 

does not go through proposed 

rulemaking first. We use direct final 

rulemaking when we expect that the 

rule will generate no significant adverse 

comments. We are issuing a direct final 

rule because we expect this regulatory 

change to be entirely non-controversial. 

This rule does not involve any statutory 

interpretation or create any new 

regulatory law. We believe this rule 

does no more than conform FRTIB 

regulations to the Internal Revenue 

Code as amended by the SECURE Act of 

2022. However, to be certain that we are 

correct, we set the comment period to 

end before the effective date. If we 

receive a significant adverse comment, 

we will withdraw the direct final rule 

before it becomes effective. 

For purposes of this rulemaking, a 

significant adverse comment is one that 

explains (1) why the rule is 

inappropriate, including challenges to 

the rule’s underlying premise or 

approach; or (2) why the rule will be 

ineffective or unacceptable without a 

change. In determining whether a 

significant adverse comment 

necessitates withdrawal of this direct 

final rule, the FRTIB will consider 

whether the comment raises an issue 

serious enough to warrant a substantive 

response had it been submitted in a 

standard notice-and-comment process. 

A comment that objects to the 

underlying statutory amendments to 

which FRTIB regulations must conform 

will be considered out of scope. A 

comment recommending an addition to 

the rule will not be considered 

significant and adverse unless the 

comment explains how this direct final 

rule would be ineffective or 

unacceptable without the addition. 

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 only 

participants and beneficiaries of 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 

FRTIB 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 


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74330 Federal Register / Vol. 88, No. 209 / Tuesday, October 31, 2023 / Rules and Regulations 

publication of this rule in the Federal 

Register. This rule is not a major rule as 

defined at 5 U.S.C. 804(2). 

List of Subjects in 5 CFR Part 1650 

Alimony, Claims, Government 

employees, Pensions, Retirement. 

Ravindra Deo, 

Executive Director, Federal Retirement Thrift 

Investment Board. 

For the reasons stated in the 

preamble, the FRTIB amends 5 CFR 

chapter VI as follows: 

PART 1650—METHODS OF 

WITHDRAWING FUNDS FROM THE 

THRIFT SAVINGS PLAN 

■ 1. The authority citation for part 1650 

continues to read as follows: 

Authority: 5 U.S.C. 8351, 8432d, 8433, 

8434, 8435, 8474(b)(5) and 8474(c)(1). 

§ 1650.16 [Amended] 

■ 2. Amend § 1650.16 by removing 

paragraph (d). 

[FR Doc. 2023–24004 Filed 10–30–23; 8:45 am] 

BILLING CODE 6760–01–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 870 

[Doc. No. AMS–FTPP–21–0055] 

RIN 0581–AE26 

Economic Adjustment Assistance for 

Textile Mills 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule with request for 

comments. 

SUMMARY: The Agricultural Marketing 

Service (AMS) revises the regulation 

providing guidance for domestic 

manufacturers that consume Upland 

Cotton and voluntarily participate in the 

Economic Adjustment Assistance for 

Textile Mills Program. The revisions 

add definitions and codify certain 

participant responsibilities currently 

outlined in the existing user Agreement. 

The changes made by this rule are 

intended to strengthen management 

controls that have been added into the 

Agreement to prevent fraud, waste, and 

abuse. This action provides the 

necessary legal support for program 

administration. 

DATES: 

Effective date: October 31, 2023. 

Comment date: We will consider 

comments that we receive by the close 

of business January 2, 2024. AMS may 

consider the comments received and 

may conduct additional rulemaking 

based on the comments. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this final rule. All comments 

must be submitted through the Federal 

e-rulemaking portal at https://

www.regulations.gov and should 

reference the document number and the 

date and page number of this issue of 

the Federal Register. All comments 

submitted in response to this final rule 

will be included in the record and will 

be made available to the public. Please 

be advised that the identity of the 

individuals or entities submitting 

comments will be made public on the 

internet at https://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Dan 

Schofer, Cotton Program Manager, 

Warehouse and Commodity 

Management Division, Fair Trade 

Practices Program, AMS, USDA; 

Telephone: (202) 690–2434, or Email: 

Dan.Schofer@usda.gov. 

SUPPLEMENTARY INFORMATION: Section 

1207(c) of the Food, Conservation, and 

Energy Act of 2008 (Pub. L. 110–234; 

May 22, 2008) directed the Secretary of 

Agriculture (Secretary) to provide 

economic adjustment assistance to 

domestic users of upland cotton under 

the Economic Adjustment Assistance to 

Users of Upland Cotton program. Under 

the program, domestic users of upland 

cotton may qualify for financial 

assistance that can be used to acquire, 

construct, install, modernize, develop, 

convert, or expand land, plant, 

buildings, equipment, facilities, or 

machinery used in the manufacture of 

final cotton products. Payments for such 

assistance are issued by the Commodity 

Credit Corporation (CCC). Recipients 

must use these funds within a certain 

timeframe and must maintain and 

provide, to program administrators, 

records related to their use of upland 

cotton and allowable capital 

expenditures under the program. 

Section 1203(b) of the Agriculture 

Improvement Act of 2018 (Pub. L. 115– 

334; December 20, 2018) renamed the 

program ‘‘Economic Adjustment 

Assistance for Textile Mills’’ (EAATM). 

In a memorandum dated July 1, 2019, 

the Secretary redelegated authority to 

administer EAATM from the Farm 

Service Agency to AMS. A final rule 

published in the Federal Register on 

October 15, 2020 (85 FR 65500), 

amended 7 CFR part 2 to reflect the 

redelegation. The amended 7 CFR 

2.79(a)(23) authorizes the AMS 

Administrator to administer the EAATM 

program (7 U.S.C. 9037(c)). A final rule 

published in the Federal Register on 

October 1, 2021 (86 FR 54339), removed 

the EAATM regulations from 7 CFR part 

1427 and added them in a new 7 CFR 

part 870—Economic Adjustment 

Assistance for Textile Mills, in §§ 870.1 

to 870.9. 

For participation in the EAATM 

program, domestic users must enter into 

an Upland Cotton Domestic User 

Agreement (Form CCC–1045–DOM) 

(Agreement) and submit upland cotton 

consumption documentation to AMS’s 

Warehouse and Commodity 

Management Division (WCMD) to 

receive financial assistance. 

AMS is now codifying the 

requirements specified in the 

Agreement as regulations. This final 

rule amends 7 CFR part 870 by 

reorganizing and revising existing 

sections and adding several new 

sections, supplying definitions of 

certain program terms, and clarifying 

current program practices to provide a 

better understanding of CCC 

requirements for program participants. 

Under this final rule, references in 7 

CFR part 870 to the Upland Cotton 

Domestic User Program are revised to 

reflect the current name of the program, 

Economic Adjustment Assistance for 

Textile Mills. The final rule adds a new 

§ 870.2—Definitions, to provide the 

meaning of several terms used in 

program administration that have been 

subject to differing interpretations in the 

past. For example, the term domestic 

user is defined as a person regularly 

engaged in the business of opening bales 

of eligible upland cotton for the purpose 

of spinning such cotton into yarn, 

papermaking, or production of nonwoven cotton products. This definition 

clarifies and enhances the use of other 

terms already defined in the current 

regulations. Eligible domestic users is 

defined as domestic users who have 

entered into an Agreement with CCC to 

participate in the program. Eligible 

upland cotton is defined to mean baled 

lint; loose samples used for 

classification purposes that have been 

re-baled; semi-processed motes that are 

suitable for spinning, paper making, or 

production of non-woven fabric; or reginned motes. Eligible upland cotton 

cannot be cotton for which previous 

EAATM payments have been made, 

unprocessed derivatives of the lint 

cleaning process, or textile mill wastes. 

Similarly, the term final cotton product 

is defined to mean a domestically 

manufactured final product that 

contains upland cotton to clarify those 

manufacturing purposes for which 

program assistance funds are eligible. 

Each of these definitions is intended to 


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