Comments on: TSP Hardship Withdrawal Requirements

By: Ryan Guina

Ryan Guina — Tue, 22 May 2012 19:18:45 +0000

You may be able to – you will need to check with your TSP manger or HR department for more information.

By: Gia

Gia — Tue, 22 May 2012 19:11:33 +0000

My question is that we took out an in-service financial hardship withdrawl last September, but my question is are we able to reapply for another one? I ask this because I got a letter stating that we couldn’t make employee contributions until recently. So basically are we able to take out another loan?

By: Ryan Guina

Ryan Guina — Wed, 04 Jan 2012 13:19:32 +0000

Michael, The TSP should report the hardship withdrawal to the IRS, but I recommend asking your accountant about it, or if you use software, ask about it in their support forums.

By: michael

michael — Wed, 04 Jan 2012 04:02:14 +0000

I got a hardship withdrawal from my TSP do I need to claim it on my taxes?

By: Ryan Guina

Ryan Guina — Sun, 18 Dec 2011 16:46:00 +0000

Michael,

Yes, you can. However, you can only make a withdrawal from the account associated with your active TSP account (you can take a withdrawal from both accounts if you have two active accounts — this would apply if you were a civil service employee and also served in the Guard/Reserves or another component).

The other limitation is that you can only make one hardship withdrawal every 6 months.

Here is more information: https://www.tsp.gov/planparticipation/inservicewithdrawals/financialHardship.shtml

Best of luck.

By: Michael

Michael — Sat, 17 Dec 2011 06:02:06 +0000

Can you make more than one hardship distribution withdrawal.

By: Tracy

Tracy — Sun, 04 Dec 2011 01:17:54 +0000

Yvonne, we have a tsp loan that we’re making payments on. We were able to take an in-service hardship withdrawal more than 6 months ago. We just tried to take a 2nd one because we have to have major car repairs done and have negative cash flow because of it. The website says it was rejected so we’re waiting for the letter of explanation. It amazes me that things seem to happen to us every 6 months……But I hope that answer helps you…….

By: Ryan Guina

Ryan Guina — Fri, 21 Oct 2011 14:41:11 +0000

Yvonne, to be honest, I am not sure. The TSP information page on hardship withdrawals was not clear on that topic. I recommend contacting the TSP Help Line for more information.

By: Yvonne Cole

Yvonne Cole — Fri, 21 Oct 2011 10:00:26 +0000

I currently have a TSP loan that I am making payments on. Can I still request an inservice withdrawl?

By: Ryan Guina

Ryan Guina — Mon, 17 Oct 2011 01:42:38 +0000

Donne, I recommend contacting the Thrift Savings Plan administrators with your specific question.