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In-service withdrawal types and terms

If you’re an active federal employee or a member of the uniformed services, you can make two types of in-service withdrawals from your TSP account: financial hardship and age-based.

Financial hardship in-service withdrawals

A financial hardship in-service withdrawal is a withdrawal that you can make from your TSP account if you have a genuine financial need.

Eligibility rules

To qualify for a financial hardship withdrawal, you must have a financial need for at least one of the following reasons:

Additional requirements for financial hardship withdrawals

In addition to the eligibility rules, the following apply:

When you complete your application, you will be required to certify, under penalty of perjury, that you have a genuine financial hardship.

Consequences of financial hardship withdrawals

Your financial hardship withdrawal is subject to federal income tax and, in some cases, state income tax. If you’re younger than 59½, you may have to pay a 10% early withdrawal penalty tax. Any tax-exempt or Roth contributions included in your withdrawal are not subject to federal income tax; neither are any qualified Roth earnings.

Be sure to read the tax notice Important Tax Information About Payments From Your TSP Account to learn more about the tax rules affecting your financial hardship withdrawals.

Age-based in-service withdrawals

Age-based in-service withdrawals are withdrawals that you can make from your TSP account when you’re age 59½ or older. We determine your age based on the date of birth reported by your employing agency or service. If that date is incorrect, you must ask your agency or service to change it.

Eligibility rules

To qualify for an age-based in-service withdrawal, the following rules apply:

Consequences of age-based withdrawals

When you make a age-based withdrawal, consider the following effects on your TSP account:

The tax notice Important Tax Information About Payments From Your TSP Account provides more information about the tax rules affecting age-based withdrawals.