TSP withdrawal


Q. I have a current loan that I am paying on in my TSP account. I am going to retire in May 2018 and I have already made a in service withdrawal from my TSP account. I will be 86 years of age when I retire, with more than 28 years of service. Is it possible to take a withdrawal to pay for the outstanding loan in the amount of $18,000? I do have a balance in my TSP account of more than $320,000. I have no other way to obtain these funds.

A. You don’t have to take a withdrawal to repay the loan. Any balance due that goes unpaid 90 days after you separate from service will be declared a taxable distribution, as though you’ve withdrawn the money.


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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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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