Q. I am thinking of applying for a VERA/VSIP my current federal employer is offering. I have a TSP loan with a balance of $25,500, which I am still paying. Can I still apply for this early retirement if I have a TSP loan balance? If so, how do I continue to pay that loan?
A. An outstanding TSP loan will not prevent you from applying for a VERA. You must repay the loan within 90 days of separating from service or the remaining balance will be declared a taxable distribution. You will have to write a check for the outstanding balance after your payroll deductions end.