Other TSP Policies Also to Change

The proposed rules also would change policies regarding contributions, loans and withdrawals for those activated for military service, for example by capping the loan interest rate at 6 percent during time missed for active service, specifying that any allowable makeup contributions after returning from military service be offset by any contributions to a military TSP account while on active service, and setting out policy on avoiding having a loan declared to be a taxable withdrawal if going on military service for one year or longer. For a close look at these and other provisions, go to https://www.fedweek.com/HotFreeNews/default.asp for the full story in the hot free info section of our website.