New TSP rules help Hurricane Sandy victims

Friday - 11/23/2012, 12:19pm EST

Victims of Hurricane Sandy will be able to continue to make contributions to their Thrift Savings Plan (TSP) even if they received a hardship withdrawal, according to new guidance issued Wednesday by the Federal Retirement Thrift Investment Board (FRTIB).

As of Wednesday, any Financial Hardship In-Service Withdrawal Request (Form TSP-76) the TSP receives until Jan. 25, 2013, will qualify as a hardship withdrawal, provided the requester checks the personal casualty box on the form and writes "Hurricane Sandy" on the form's top. To qualify, distributions must take place prior to Feb. 1, 2013.

If the participant writes "Hurricane Sandy" on the top of the TSP-76 form and checks the personal casualty box, the TSP will waive the prohibition that prevents an employee from making contributions six months after a hardship withdrawal is taken. Employees will be allowed to make contributions and receive an employer match, provided they are eligible.

These temporary changes are not retroactive.

To learn more, go to TSP.gov.