Process to Get TSP Hardship Loans

1
What is a Thrift Savings Plan?

• A TSP is a retirement savings plan for people who
  work full-time, part-time or for the federal
  government in an eligible status. TSPs hardship
  loans are available to
• Federal Employees Retirement System, (FERS), or
  Civil Service Retirement System, employees
• Active duty members of the Ready Reserve or
  members of a uniformed military service
• Additional government service categories include
  civilians

2

• Two types of TSPs may be available to you Roth
  TSPs or traditional TSPs.
• Traditional TSPs use pre-tax contributions from
  your salary, employer matching and other sources
  to fund the account. Until you start taking
  distributions, you don't have to pay tax on the
  earnings and investments. This is usually when
  you reach retirement age.
• Roth TSPs include post-tax contributions that are
  not taxable when you withdraw the money.
  Participation in either one or both of these TSPs
  may be possible.

3
What is a TSP hardship loans?

• TSP hardship loans defined contribution plans,
  allow you to contribute a portion of your pretax
  income to an investment fund. This is usually
  done through payroll deductions. You may be
  eligible to have your employer contribute to your
  account. This will increase the amount available
  for investment.
• If you are younger than 50, you can contribute as
  much as 20,500 to either traditional or Roth TSP
  options for 2022. Catch-up contributions can be
  made if you are 50 or older.

4
Conclusion

• If you are a government employee, the TSP
  hardship loans are a great way to save for your
  future. It functions in a similar way to a
  401(k), 403(b), and allows you to manage your
  investments. This makes it easy for people who
  are moving from the private sector to the public
  sector.