Asked by: Romaysae Forstenhausler
asked in category: General Last Updated: 23rd April, 2020

What is a TSP hardship withdrawal?

Your financial hardship withdrawal is considered a non-periodic payment for Federal income tax purposes. The TSP will withhold 10% of the taxable portion of your withdrawal for Federal income tax unless you increase or waive the amount of withholding.

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Similarly, you may ask, how much can I withdraw from TSP hardship?

legal services. The following rules apply to making a financial hardship withdrawal: You cannot withdraw less than $1,000. (including money you may have transferred into the TSP from IRAs or eligible employer plans) and the earnings on those contributions.

Additionally, can I take a hardship withdrawal from my TSP? It is possible to take an in-service withdrawal from your TSP account to meet a financial hardship. But before you do, it's important to understand how it will affect your account. It's a permanent withdrawal from your TSP account. You cannot put the money back.

Keeping this in consideration, what qualifies as a hardship withdrawal?

Without the hardship provision, withdrawals are difficult at best if you're younger than 59½. A hardship withdrawal, though, allows funds to be withdrawn from your account to meet an “immediate and heavy financial need,” such as covering medical or burial expenses or avoiding foreclosure on a home.

How do I withdraw my TSP money?

To request a withdrawal, log into My Account and click on the “Withdrawals and Changes to Installment Payments” link on the menu. From there you'll have access to an online tool with which to start your withdrawal.

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