Q. I’ve looked through the various combinations of possibilities on your web page (very helpful, thank you), but have not seen my exact question answered. I am having financial difficulties. I am 57 years old with 20 years of service and don’t plan on retiring for at least 5 years. What I would like to do is take out a TSP loan, then when I turn 59 ½ take an age-based disbursement for enough to pay back the balance of the loan and have some money left over. Can I do it that way? Or would I be required to pay off the loan before getting an age-based disbursement?
I would think they would just deduct the amount of money I still owe from the disbursement. For example, say I took out a $50k loan now. In 2 and ½ yrs I’d still owe around $25-30k. Could I take my one-time age-based disbursement of say $100k with the loan balance deducted from that amount?A: Having a TSP loan outstanding does not preclude you from taking an age-based in-service withdrawal.