The Federal Retirement Plan, TSP, Will Require a Notary for Documents for which the Requirement had been Waived due to COVID-19.
When a withdrawal is requested from a Federal employee’s Thrift Savings Plan (TSP) account, a spousal signature is required. This is to ensure that both the TSP account owner and their spouse are both aware of the use of money that is intended for retirement savings. Tax consequences, loss of potential growth, and other unpleasant effects can stem from an ill-advised withdraw from a savings vehicle such as the TSP. Therefore, the plan requires a notarized signature from a spouse if the owner is in fact married.
During the COVID-19 pandemic, TSP initially loosened several requirements, including a notary stamp to confirm a spouse’s signature. This was to help people make withdrawals during the onset of the coronavirus’ spread, and also assist in nationwide social distancing efforts. According to the TSP website, effective October 1st, spousal signatures for TSP account withdraws will need to be verified by a notary.
Until Next Time,
**Written by Benjamin Derge, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
TSP Resumes Notary Requirement