USPS Thrift Savings Plan Hardship Withdrawl
50 yr old client works for US Post Office and has cancer. Does anyone know how / what hoops she needs to jump through to get a hardship withdrawal from her Thrift Savings Plan so she has $$ to live on as she goes through Chemo? Please advise.
Permalink Submitted by Alan Spross on Tue, 2009-12-08 00:29
Attached is a link containing a summary of hardship withdrawal issues. The client should contact the plan, and they probably have an application to be completed. Note that these medical costs appear to meet the requirements to qualify, but the distribution will be subject to and penalty. The portion the client spends on the actual medical costs, not including the tax and penalty amounts may qualify for an itemized deduction subject to 7.5% of AGI for medical costs, and can also be exempted from the 10% penalty.
http://www.401khelpcenter.com/hardships.html