Your TSP savings and the CARES Act

The CARES Act seeks to address the economic impacts of the coronavirus (COVID-19) and includes provisions related to retirement plans. You can find details about your options through the TSP on our COVID-19 Updates webpage.

Here’s a summary of what the CARES Act allows us to offer you:

1. Temporary loan options – Until November 30, you may request to suspend your obligation to make payments to your TSP loan or loans for the rest of calendar year 2020. The maximum amount for new loans increases to $100,000 until September 18.
   Find out more→
   • These loan options are available only if you can certify that you meet certain criteria.
     
     
2. Special withdrawal rules – The IRS will waive the 10% additional tax on an early distribution from your TSP account. You can spread the taxable income over three years, or you can repay or roll over all or part of that distribution within three years, reversing the tax consequences. By late July 2020, we’ll release a temporary TSP “CARES Act Withdrawal” that waives the usual requirements for those still in service and allows all eligible participants to waive tax withholding.
   Find out more→
   • These withdrawal options are available only if you can certify that you meet certain criteria.
     
     
3. Changes to required minimum distributions (RMDs) – You do not need to make any withdrawals from your TSP account in 2020 to satisfy an RMD, regardless of your age or employment status. We will not send any automatic RMD payments for 2020. If you received any withdrawal between February 1 and May 15 that is eligible for rollover, then the IRS has extended your 60-day rollover deadline to July 15th. 
   Find out more→
   
   • These RMD changes are available to you whether or not you have been affected by COVID-19.

More Lifecycle Funds available July 1

Starting July 1, 2020, you will have ten Lifecycle (L) Funds to choose from instead of the five currently available. We’re adding the additional L Funds so that the target dates will be separated by only five years instead of ten, allowing you to more precisely target the time when you think you’ll need your money. Six more L Funds will be added, and the L 2020 Fund, having reached its target date, will be rolled into the L Income Fund.

See the fact sheet Additional Lifecycle (L) Funds (pdf) for more information.

A better TSP website for you

When you visit our website after July 11, you’ll see a newly improved TSP experience designed with you in mind. The TSP website redesign will make it easier for you to find the information you need, whether you’re preparing your first withdrawal request, learning more about TSP funds, or looking for the most up-to-date forms and publications. Even My Account will get a new look and feel while offering the same important functions to manage your account.

Thank you to all the TSP participants who contributed to user testing and interviews during the past two years of development. Your feedback was essential in making sure we could build a website that will meet your needs.

We hope you enjoy exploring with the new navigation, and we’ll continue to make improvements based on your feedback through the site.