Federal Employees News Digest

TSP tweaks withdrawal rules for hurricane victims

The Thrift Savings Plan last week announced it would temporarily modify financial hardship withdrawal rules for TSP participants affected by Hurricane Matthew.

As of Oct. 25, TSP said that financial hardship in-service withdrawal requests will be treated as a qualifying hardship for those participants.

TSP also will waive the rule prohibiting employee contributions for six months after taking a hardship withdrawal—provided the participant’s primary residence or place of employment is located in a “covered disaster area” and has incurred a loss as a result of Hurricane Matthew, or the 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 Matthew.

To qualify, a participant must be actively employed as a federal civilian or a member of the uniformed services. Complete application instructions are available on the TSP website.

See the instructions here: https://www.tsp.gov/whatsnew/Content/index.html#matthew.

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Contributors

Edward A. Zurndorfer Certified Financial Planner
Mike Causey Columnist
Tom Fox VP for Leadership and Innovation, Partnership for Public Service
Mathew B. Tully Legal Analyst

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