By Mike Miles
May 13th, 2013 | Uncategorized
Q. I am facing furlough soon. I already have one Thrift Savings Plan loan. Can I withdraw money from my TSP on a hardship withdrawal basis because of the furlough? I realize, if I did, I would have to pay taxes on it, etc.
A. The furlough alone does not qualify you for a hardship withdrawal. To qualify for a financial hardship withdrawal, you must have a financial need for at least one of the following reasons:
* Negative monthly cash flow.
* Medical expenses (including household improvements needed for medical care) that you have not paid and that are not covered by insurance.
* Personal casualty loss(es) that you have not paid and that are not covered by insurance.
* Legal expenses (that you have not yet paid) for separation from your spouse or divorce.
Read the booklet at https://www.tsp.gov/PDF/formspubs/tspbk12.pdf for more details.
stephen Miller Says:
May 14th, 2013 at 9:44 am
Instead of furlough, why can’t we just give leave / vacation time back to the government? The leave not being used is like money in the bank. We finish the year with no leave and production doesn’t suffer because of low morale.
The furlough no matter the amount could bring hardship to cash strapped families.