Thrift Savings Plan Help for Hurricane Harvey Victims
The Thrift Savings Plan (TSP) has made a temporary change to the financial hardship withdrawal rules for participants affected by Hurricane Harvey: As of September 1, 2017, they 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:
- Your primary residence or place of employment is located in a covered disaster area and has incurred a loss as a result of Hurricane Harvey.
- Your 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 Harvey.
IN ADDITION, you must also meet all of the following requirements:
- You must be actively employed as a federal civilian or a member of the uniformed services.
- You must complete Form TSP-76, Financial Hardship In-Service Withdrawal Request.
- You must write “Hurricane Harvey” at the top of page 1 above the name of the form.
- You must check the “Personal Casualty Loss” box on page 2, Item 18 of your request form, as the reason for requesting financial hardship.
- Your request must be received in their office by January 24, 2018 and, in compliance with IRS guidelines, your 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 your TSP contributions will automatically stop for 6 months.
This rule change is not retroactive and all other Form TSP-76 rules apply. Participants may only receive one hardship withdrawal under this change. If you have questions about this change, call the toll-free ThriftLine at 1-877-968-3778. Outside the U.S. and Canada, please call 404-233-4400 (not toll free).