FEDweek

Temporary Change to the TSP Financial Hardship Withdrawal Rules Made

On Friday, September 2, the Federal Retirement Thrift Investment Board announced that it had made a temporary change to the TSP financial hardship withdrawal rules to help TSP participants who are victims of the recent Louisiana storms/flooding.

In completing form TSP-76, Financial Hardship In-Service Withdrawal Request, affected participants should check box 2 (for personal casualty loss) and write “Louisiana Storms” at the top of the form.  In addition to allowing this withdrawal, the TSP will also waive the rule that prohibits a participant from contributing to the TSP within 6 months of taking a financial hardship withdrawal.

Forms must be received and/or distributions must be taken by January 1, 2017 to qualify for this special treatment.

For the third straight month, the annuity interest rate *used to compute the amount of TSP annuities) has dropped to an all-time low.  For September it has gone down to 1.375%.  In June, before it began dropping, it was 1.8%.