Fedweek

The TSP has temporarily loosened rules on hardship withdrawals by actively employed account holders affected by Hurricane Matthew, in the same way it previously did for victims of severe storms in Louisiana. Under the policy they may take a hardship distribution without submitting the type of documentation of a hardship normally required for such a request. That also applies to someone outside the disaster area–which includes parts of North Carolina, South Carolina, Georgia and Florida–taking money to assist a son, daughter, parent, grandparent or other dependent who lives or works in an affected area. To qualify, applicants must submit the standard hardship withdrawal form, the TSP-76, write Hurricane Matthew at the top of the first page, designate the request as for a personal casualty loss, and have the application in to the TSP by March 8. Only one hardship withdrawal may be made under the rules changes, which took effect yesterday (October 25) and are not retroactive. The standard six-month ban on making new investments in the account after taking a hardship withdrawal will not apply—although account holders may stop investing if they wish–but standard tax policies will continue to apply.