Matching funds during TSP loan repayment


Q: I plan on withdrawing money from my Thrift Savings Plan account for a residential loan. Can I continue my contributions and receive matching funds during the repayment period? Also, is it required that repayment is done through payroll deduction? As I intend to pay back the loan in 20 months from my wife’s income, I prefer to pay directly by check each month.

A: You may continue to contribute and receive matching contributions while repaying your loan. Your loan must be repaid through payroll deduction.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

1 Comment

  1. This comment comes to provide a more complete answer on repaying a TSP Loan. Although Mr. Miles is accurate that TSP Loans must be set up to be paid through payroll deduction, there is no prohibition that payments cannot be made directly via a check. As the inquirer is looking to repay the TSP loan over 20 months, it may be recommended to set up the TSP loan repayment (via payroll withholding) to be over the longest allowed time period (15 years on a residential purchase loan). This would equate to the least amount of TSP loan repayment being withheld from the inquirer’s payroll. The remaining amount could be paid from the inquirer’s wife’s income via direct check payment and a TSP Loan Payment Coupon, TSP Form OC 02-7.

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