Supply Chain Council of European Union | Scceu.org
Supply Chain Risk

TSP Finalizes Broadening of Hardship Withdrawal Change

The TSP has finalized rules it proposed earlier this year making certain expenses related to a natural disaster automatically eligible for in-service “financial hardship” withdrawals.

Traditionally, such withdrawals commonly have been allowed after the IRS issues a policy statement in the wake of a disaster such as a flood or hurricane. However, that agency has decided to no longer make such announcements and instead added natural disasters to a list of situations in which withdrawals are allowed under the so-called “safe harbor” rule.

The TSP’s new policy makes eligible for financial hardship withdrawals any expenses and losses, including loss of income, resulting from a natural disaster declared by the Federal Emergency Management Agency.

In finalizing the rules, the TSP clarified that the policy “does not limit the expense to a specific type, such as property expenses or medical expenses” so long as it was incurred by someone living in a designated area. That would include, for example, funeral expenses for a dependent or spouse who died as a result of the disaster.

The TSP meanwhile said that under the rules a pandemic does not qualify as a natural disaster, adding that special hardship withdrawal policies already are in effect due to the Coronavirus pandemic.

Count of TSP Millionaires Recovers from Early Year Drop

TSP Finalizes Broadening of Hardship Withdrawal Change (Oct 5)

Pop Quiz: Test Your Federal Retirement Knowledge II

FERS Retirement Guide 2021

 

Related posts

Public Joint Stock Rosneft Oil : Rosneft Reduces Fugitive Methane Emissions in Exploration and Production by 73% in 2019

scceu

Meet candidates for District 5 supervisor – Lake County Record-Bee

scceu

Counting SEA Games’ risks and benefits – BusinessWorld Online

scceu

Leave a Comment