Browsing: TSP loan

Q. I am 67 with $360,000 in TSP and 29 years of federal service. I am also $26,000 in credit card debt at 16 percent annual interest rate. I am vacillating between an age-based in-service withdrawal and a 2.35 percent TSP loan to pay off the credit card debt. Finance-wise, I suppose it makes sense to pay off the credit card with the TSP loan, ($630/mo over 5 years versus $460/mo), but what I’d really like to do is get rid of the debt entirely and not have it hanging over my head at all! I am aware of the…

Q. I owe for service credit when I withdrew my CSRS retirement in 2000. I did return to the government in 2003 and I’m now CSRS Offset. With interest I owe about $78,000. I have recently started making payment so I can receive the credit. I’m 56 and I hope to work until I’m 60. Since the interest continues to accumulate and I don’t have funds to make very large payments, I’m wondering if it would be wise to take out a TSP loan to pay down some of what I owe? If I do retire at 60 would any…

Q. I’m eligible to retire March 2018. I will have FERS, 35-plus years and I’m age 56. Also, I will have an outstanding TSP loan (two years to pay it off). Would I have to pay it off or will it be a write-off with a penalty tax?

Q. I have a question about repayment of a TSP loan. I want to either up my TSP contribution to 10 percent ($384 a pay) or up my loan payment by $384. What is the better financial decision? Either way, the same amount of money is going into my account, so other than the tax effects is there a preferred option? What about using the $384 to pay off consumer debt? I could pay off a credit card in about six months if I added the biweekly amount I would put into my TSP to my credit card, but obviously…

Q. I made a $50,000 loan to my TSP account. I separated from active-duty service. Now I’m being asked to pay the $40,000 remaining balance in full. If I allow the TSP to close the loan, can I move the funds to an IRA within two months after the loan is closed? If this is allowed, what IRA publication covers this transaction? Or would the best course of action be to pay the loan in full to TSP?

Q. I would like your opinion about borrowing from the TSP. This is my financial situation: Second house mortgage, $33,000, at 8 percent interest. First mortgage, $179,000, an ARM at 4 percent interest. Student loan, $19,000, at 7 percent. I am thinking about taking a $50,000 loan from the TSP and paying the second mortgage and the student loan. Another option is refinancing the mortgages at 4.5 percent fixed and just continue paying the student loan at the current rate. I am afraid of borrowing from the TSP and lose on potential future earnings, but I don’t want to continue paying so…

Q. I am looking for a clear answer in regard to TSP home loans. I am considering retirement in the next year. I am eligible to retire today. If I utilize a TSP home loan now for my primary residence (and planned retirement residence) and retire before the loan is paid in full, will I be hit with a penalty? Can I utilize a one-time payout at time of retirement to pay the loan in full without incurring a penalty?

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