Thrift Savings Plan announcements

by TSP
TSP

The TSP has made a temporary change to the financial hardship withdrawal rules for participants affected by Hurricane Irma: As of September 13, 2017, we will treat any Financial Hardship In-Service Withdrawal Request as a qualifying hardship and will waive the rule prohibiting employee contributions for 6 months after taking a hardship withdrawal provided one of the following is true:

1. The participant’s primary residence or place of employment is located in a covered disaster area (https://www.fema.gov/disasters) and has incurred a loss as a result of Hurricane Irma.

OR

2. The participant’s hardship withdrawal will be used to assist an eligible family member who lives or works in a covered disaster area and who has incurred a loss as a result of Hurricane Irma.

IN ADDITION, the participant must also meet all of the following requirements:

The participant must be actively employed with the federal government.

The participant must complete Form TSP-76 (https://www.tsp.gov/PDF/formspubs/tsp-76.pdf) Financial Hardship In-Service Withdrawal Request.

The participant must write “Hurricane Irma” at the top of page 1 above the name of the form.

The participant must check the “Personal Casualty Loss” box on page 2, Item 18 of the request form, as the reason for requesting financial hardship.

The participant request must be received in our office by January 24, 2018 and, in compliance with IRS guidelines, the distribution must occur before January 31, 2018. Any Financial Hardship In-Service Withdrawal Request forms received after January 24, 2018 will be processed as a standard hardship withdrawal, and the participant’s TSP contributions will automatically stop for 6 months.

If the participant wants to stop TSP contributions, he or she must complete Form TSP-1 (https://www.tsp.gov/PDF/formspubs/tsp-1.pdf) or use the applicable automated system.

This rule change is not retroactive and all other Form TSP-76 rules apply. Participants may only receive one hardship withdrawal under this change.

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