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Federal workers should think twice before tapping a TSP

Source: Michelle Singletary, Washington Post (Paid Registration)

One pot of money some may be considering tapping is the Thrift Savings Plan (TSP). It’s the federal version of a 401(k). There are two ways for workers affected by the shutdown to get to that money. They can ask for a hardship withdrawal or take out a general-purpose loan.

If you choose to take a hardship withdrawal, keep in mind that if you’re younger than 59½, there’s a 10 percent penalty for early withdrawal.  It gets complicated if you want to take out a loan.

Read Full Article: Federal workers should think twice before tapping a TSP


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