Q. I’m planning on retiring June 2018. I have 38 years of service at age 57 with and outstanding TSP loan of $20,000. Will I get penalized if my load is not repaid? And can I withdraw the rest of my TSP once I separate?
A. You will not pay the early withdrawal penalty for the declared distribution of the loan balance. You may withdraw the balance of your account, net of any unrepaid loan balance, after you separate from service.
