Forced to withdraw

Printable View

08-12-2019, 02:07 PM
Evasiveaction

Forced to withdraw

Injured on the Job Fed who faced over 18 months of games with OWCP without a penny in income. I had to pull 30K at the 6 month mark to keep my kids in their bedrooms, fed etc.. and now have to pull another amount. Despite my workers comp hardship which forbids me from working anywhere, even as an UBER driver which would have nothing to do with my injuries, TSP will only allow me to make a withdrawl with a penalty of 10%, taxed.

Is there any way to place the money back into TSP once courts finally make OWCP give me back pay? At least the amount taken out toget my TSP to pre injury levels?
08-12-2019, 02:25 PM
tsptalk

Re: Forced to withdraw

I'm not sure if you can do it all at once, but I believe one of the new rules is that, according to FedSmith,com, if you use the “personal casualty” box on the TSP-76, "the TSP will waive the rule that prohibits a participant from making employee contributions for 6 months after taking a hardship withdrawal."

At that point you can make max deposits, and depending on your age, perhaps catch-up contribution (not sure on that one).

Sorry I can't be more helpful. That's a new one for me.

Source: https://www.fedsmith.com/2018/12/05/...hdrawal-rules/
08-12-2019, 02:59 PM
userque

Re: Forced to withdraw

Quote:

Originally Posted by Evasiveaction

Injured on the Job Fed who faced over 18 months of games with OWCP without a penny in income. I had to pull 30K at the 6 month mark to keep my kids in their bedrooms, fed etc.. and now have to pull another amount. Despite my workers comp hardship which forbids me from working anywhere, even as an UBER driver which would have nothing to do with my injuries, TSP will only allow me to make a withdrawl with a penalty of 10%, taxed.

Is there any way to place the money back into TSP once courts finally make OWCP give me back pay? At least the amount taken out toget my TSP to pre injury levels?

I assume/hope you are represented. I assume your case in now in court, rather than at ECAB.

In addition to what Tom says, you can essentially ask the court to restore you to your status quo ante as well as awarding you other damages. Such an order could bypass Catch-up rules/restrictions and restore penalties and lost returns, etc.

Good Luck!