what is considered a hardship withdrawal
Your financial hardship withdrawal is considered a non-periodic payment for Federal income tax purposes. The TSP will withhold 10% of the taxable portion of your withdrawal for Federal income tax unless you increase or waive the amount of withholding. Also, if you make a financial hardship withdrawal before age 59Â½, you may be subject to a 10% early withdrawal penalty tax on the taxable portion of your withdrawal. This penalty tax is in addition to the ordinary income tax you will have to pay.