Q. I am facing furlough soon. I already have one Thrift Savings Plan loan. Can I withdraw money from my TSP on a hardship withdrawal basis because of the furlough? I realize, if I did, I would have to pay taxes on it, etc.
A. The furlough alone does not qualify you for a hardship withdrawal. To qualify for a financial hardship withdrawal, you must have a financial need for at least one of the following reasons:
* Negative monthly cash flow.
* Medical expenses (including household improvements needed for medical care) that you have not paid and that are not covered by insurance.
* Personal casualty loss(es) that you have not paid and that are not covered by insurance.
* Legal expenses (that you have not yet paid) for separation from your spouse or divorce.
Read the booklet at https://www.tsp.gov/PDF/formspubs/tspbk12.pdf for more details.