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Withdrawals and repayments

The CARES Act included favorable tax provisions for most types of TSP withdrawals made by participants affected by COVID-19. It also allowed us to create a new, temporary withdrawal option that waived the usual in-service withdrawal requirements and allowed all COVID-affected participants to waive tax withholding.

The deadlines for taking a withdrawal with favorable tax treatment and for taking the special TSP CARES Act Withdrawal have both passed. The information on this page is for eligible TSP participants who took a withdrawal between January 1 and December 30, 2020.

Qualified individuals

To be eligible for the favorable tax treatment described below, you must be a qualified individual. You’re a qualified individual if you meet at least one of the following criteria:

Only coronavirus-related distributions are eligible for the favorable tax treatment provided by the CARES Act. As defined by the Internal Revenue Service (IRS), a coronavirus-related distribution is “a distribution (withdrawal) that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs.” That means $100,000 is the maximum amount across all your retirement plans combined that you can apply these tax advantages to. You must designate your withdrawal(s) as a coronavirus-related distribution when you file your taxes. To do that, you’ll file Form 8915-E.

The tax advantages for qualified individuals who took coronavirus-related distributions are as follows:

To make a repayment of a coronavirus-related distribution to your TSP account as described in the previous section, complete Form TSP-60 (to repay into your traditional balance) or Form TSP-60-R (to repay into your Roth balance). By signing the form, you are self-certifying that you are a qualified individual and that the withdrawal you are repaying was a coronavirus-related distribution. To protect your privacy, do NOT send medical information with your application. The terms “qualified individual” and “coronavirus-related distribution” are both defined earlier on this webpage.

Submit the completed and signed form TSP-60 or TSP-60-R, any documentation required by the form, and a check for the amount you are repaying to the address provided.