Federal employees who receive "financial hardship" withdrawals from their Thrift Savings Plan accounts will no longer be able to put the money into IRAs or other retirement plans, TSP officials said.

The board eliminated the provision that allowed financially-strapped employees who withdrew funds from their TSP accounts to transfer the funds into individual retirement accounts or other eligible retirement plans.

"New IRS regulations state that money received from hardship withdrawals can no longer be rolled over into other retirement instruments," officials explained.

The new rule, which went into effect Aug. 20, also requires employees to send documentation supporting financial hardship within 45 days of their application.

The TSP allows employees who face "extraordinary expenses" due to hardship to apply for a withdrawal from their account. The types of expenses that meet the definition "extraordinary" include: unexpected medical costs; home improvements to accommodate an injury or illness; costs associated with property loss due to a natural disaster or unusual event, such as theft and legal expenses associated with divorce or separation.

"Employees cannot withdraw funds to pay alimony or child support," officials said

Those who qualify for hardship withdrawals cannot withdraw more than the amount of their request, or the amount of their own contributions and earnings, whichever is smaller. After making a financial hardship withdrawal, employees cannot contribute to their TSP accounts for six months.