[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]New legislation was introduced for government employees to access their TSP (Thrift Savings Plan) accounts without the normal penalties that come with it. For those deemed excepted (and find themselves working through the partial government shutdown), bill H.R. 338 will fill gaps in earnings without any fees or penalties.
For federal employees, they’re well aware that withdrawals under this exception normally will not be allowed. However, thanks to Congressman Mark Meadows, the allowance would be introduced until the end of the shutdown (as long as it passes into law). As soon as the shutdown ends, any amount taken from the TSP can be repaid in the shape of ‘catch-up’ contributions. For those struggling to make ends meet and fend off creditors, this could be a very important legislation.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
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- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
Meadows’ Statement
In a recent statement regarding the bill, Meadows noted his passion for federal workers getting what they deserve while continuing to work through the government shutdown. As a contributor in Congress, he wants the best solution for workers who are working just as hard now as they normally do with regular pay. Furthermore, he wants the bill to be voted on quickly, so federal employees have some help before it’s too late.
For Meadows, this is an interesting change of position since federal workers were outspoken against the Congressman not so long ago when he said working without pay during a government shutdown was ‘part of what you do’ when choosing public service as a career. He also noted how all government employees know that they may be required to work during these difficult times. Yet, it wasn’t ‘lost’ on him that financial hardship can result from these circumstances.
Since these comments, Meadows has been a huge contributor to this bill, and he has even asked to have his salary withheld while the shutdown goes on. In fact, he has gone even further by saying that all Members of Congress should have their salary stopped during a shutdown.
TSP Assistance
During this difficult time, loan payments are still required in many cases…but the TSP has decided to step in. In order to suspend loan payments and prevent defaulting on a TSP loan, there’s no longer a need to show proof of furloughs. If you want to suspend loan payments, get in contact with the TSP today![/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”35871″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
