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The Thrift Savings Plan (TSP) has announced that participants may now apply for the new temporary loan and withdrawal options available under coronavirus relief legislation.
The loan policy changes are available only if a participant, spouse or dependent has been diagnosed with coronavirus or “is experiencing adverse financial consequences” as a result of quarantine, furlough, reduction in work hours or being unable to work due to lack of child care due to the virus.
The maximum loan amount on a general purpose loan is increased from $50,000 to $100,000, and the portion of your available balance you can borrow is raised from 50 percent to 100 percent.
All of the other rules on TSP loans apply, including that you may not have more than one general purpose loan at the same time. The deadline for applying is Sept. 18, 2020.
These participants may also temporarily suspend payments for the rest of this calendar year on TSP loans they currently have and on new loans taken between now and Nov. 30, 2020. The deadline for requesting suspension of loan payments is Nov. 30, 2020.
Learn more about these temporary loan options