Loan Options Now Available for TSP Participants Affected by COVID-19

The Thrift Savings Plan (TSP) participants may now apply for the new temporary loan and withdrawal options available under coronavirus relief legislation. The loan policy changes are available only if a participant, spouse or dependent has been diagnosed with coronavirus or “is experiencing adverse financial consequences” as a result of quarantine, furlough, reduction in work hours or being unable to work due to lack of child care due to the virus. The maximum loan amount on a general purpose loan is increased from $50,000 to $100,000, and the portion of your available balance you can borrow is raised from 50 percent to 100 percent. The deadline for applying is Sept. 18, 2020. Participants may also temporarily suspend payments through the end of this year on TSP loans they currently have and on new loans taken between now and Nov. 30, 2020