Why more federal employees and retirees are protecting their retirement savings using this overlooked, IRS-approved programThe Thrift Savings Plan (TSP) provided the following alerts to participants regarding loan payments, its January processing schedule, and fourth quarter statements.
SEE ALSO: What Happens to Your TSP Account During a Government Shutdown?
Fourth Quarter Participant Statements Are Online and in the Mail
Your fourth quarter 2018 participant statement, covering the period from October 1 through December 31, 2018, is now available in My Account.
IRS Form 1099-R for the Thrift Savings Plan
IRS Form 1099-R, Distribution from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for tax year 2018 will be posted on TSP.gov in My Account and mailed by January 31, 2019. Note that withdrawals processed after December 27 are considered taxable income for 2019 and will not be included on 2018 1099-Rs. Taxable distributions of loans are taxable in 2018 if made on or before December 31 and will be included on 2018 1099-Rs.
Government Shutdown and Loan Payments
The TSP allows for the suspension of loan payments when you go into nonpay status to prevent your loan from going into default. Normally, we require documentation from your agency or service. However, the TSP does not need documentation of your furlough at this time. If your loan payments were up to date prior to the furlough, missing one or two payments will not cause your loan to be in default. You can check the status of your loan by logging into My Account, selecting “TSP Loans,” and then selecting “Are my payments up to date?” Or you can call the ThriftLine at 1-877-968-3778 and speak to a Participant Service Representative.
As long as retroactive pay is approved, all missed loan payments will be submitted and posted to your loan. We will provide more information as the furlough continues or as events change.
January Processing Schedule
January 21 — The financial markets will be closed on Monday, January 21, in observance of the Martin Luther King, Jr. holiday. The Thrift Savings Plan will also be closed. Transactions that would have been processed Monday night (January 21) will be processed Tuesday night (January 22) at Tuesday’s closing share prices.
Withdrawals processed after December 27 — Withdrawals processed the last two business days of December 2018 are considered taxable income for 2019, not 2018. The TSP will report them to you and to the Internal Revenue Service (IRS) on IRS Form 1099-R by January 31, 2020.