Loan, Withdrawal Transactions Also Affected

Special considerations also will apply to those wishing to take out loans or make account withdrawals during the transition period ahead. Loan or withdrawal requests will have to be received by the TSP by August 23 in order to be disbursed starting September 16. After the changeover, the processing of loans and withdrawals also should be speeded up. In addition, the maximum period for a general purpose loan will be extended from four to five years, partial repayments of loans will be allowed and more than one reamortization of a loan will be allowed. Several new withdrawal options also will be created, although one will be eliminated: the choice of drawing out an annuity balance as a series of equal monthly payments for a fixed number of months. Investors desiring that type of withdrawal would have to act before the August 23 deadline.