Hardship withdrawal rules relaxed to help victims of Hurricane Sandy
By U.S. Air Force
| Dec. 17, 2012
Members of the New York National Guard assist Nov. 3, 2012, after Hurricane Sandy struck. (Photo by Master Sgt. Corine Lombardo, New York National Guard)
WASHINGTON - The Federal Retirement Thrift Investment Board announced it has made temporary changes to the Thrift Savings Plan hardship withdrawal rules to help victims of Hurricane Sandy pursuant to the guidance issued by the Internal Revenue Service on Nov. 16.
The TSP will treat any Financial Hardship In-Service Withdrawal Request (Form TSP-76) received until Jan. 25, 2013 as qualifying for a hardship withdrawal, if the participant follows the following instructions:
The participant should write "Hurricane Sandy" at the top of the form and check the "personal casualty" box on the TSP-76. The TSP will then waive the rule that prohibits a participant from making employee contributions for six months after taking a hardship withdrawal.
The distributions must occur before Feb. 1, 2013, to qualify for this treatment.
This will allow an employee to continue to make contributions to the TSP and receive the employer match (if eligible). These temporary changes will not be effective retroactively.