Changes

*Hardship withdrawal: an employee may take out a withdrawal for one of four reasons (negative cash flow, medical expenses, personal casualty loss, or legal expenses for a marital separation or divorce).

*Hardship withdrawal: an employee may take out a withdrawal for one of four reasons (negative cash flow, medical expenses, personal casualty loss, or legal expenses for a marital separation or divorce).

At retirement an employee can no longer take out loans nor can future contributions be made.  If the balance is under $200 it is automatically cashed out but can be rolled over into a different plan.<ref>Balances of under $5 are forfeited to the TSP, but employees can later reclaim them.</ref>  The employee can choose from any combination of the following options with regards to the balance (however, upon reaching age 70 1/2 -- or upon retirement if later than that -- the employee must withdraw at least the minimum amount per IRS life expectancy tables; TSP will do this automatically if the employee does not):

At retirement an employee can no longer take out loans nor can future contributions be made.  If the balance is under $200 it is automatically cashed out but can be rolled over into a different plan.<ref>Balances of under $5 are forfeited to the TSP, but employees can later reclaim them.</ref>  The employee can choose from any combination of the following options with regards to the balance (however, upon reaching age 70 1/2 -- or upon retirement if later than that—the employee must withdraw at least the minimum amount per IRS life expectancy tables; TSP will do this automatically if the employee does not):

*Leave the balance, or part of it, in the account

*Leave the balance, or part of it, in the account

*Withdraw the balance, or part of it, either via rollover or cash out, purchase an annuity, or via periodic payments (based on either an amount stipulated by the employee -- which can be monthly, quarterly, or annually)

*Withdraw the balance, or part of it, either via rollover or cash out, purchase an annuity, or via periodic payments (based on either an amount stipulated by the employee—which can be monthly, quarterly, or annually)

If a participant dies, then any unpaid balance is paid to the beneficiary(ies) designated.<ref>However, if the beneficiary(ies) caused the death of the account holder, they are not paid, but are treated as having predeceased the account holder.</ref>  If the participant did not designate any beneficiary(ies), then the "statutory order of precedence"<ref>The order of precedence is also used for payment of insurance benefits under the [[FEGLI]], unused portions of a [[Federal Employees Retirement System]] (FERS) annuity, and unpaid compensation.</ref> is used, as follows:

If a participant dies, then any unpaid balance is paid to the beneficiary(ies) designated.<ref>However, if the beneficiary(ies) caused the death of the account holder, they are not paid, but are treated as having predeceased the account holder.</ref>  If the participant did not designate any beneficiary(ies), then the "statutory order of precedence"<ref>The order of precedence is also used for payment of insurance benefits under the [[FEGLI]], unused portions of a [[Federal Employees Retirement System]] (FERS) annuity, and unpaid compensation.</ref> is used, as follows: