Q. I am covered under the FERS and plan to retire at the end of April 2017 at age 57 with 33 years of service. I intend to take out a TSP general purpose loan just prior to retirement to pay off some debt and then employ a combination withdrawal strategies for the remaining balance: TSP monthly payments, partial lump sum (paid to me) and a rollover to an qualified IRA. I want the monthly payments to start as soon as possible but delay the lump sum and rollover to occur in 2018. Is this a sound plan? Can the…
Browsing: TSP loan
Q. I was told in mediation that my 6-month-old, 15-year residential TSP loan of $300/month ($42,000) does not get considered as debt in figuring division of assets. This TSP debt was to acquire our principal residence that is without bank lien and will be granted to her. Am I required to pay this monthly debt on my TSP without some sort of concession on the part of my spouse?
Q. Being too young for retirement, I would like to tap into my retirement money for necessary costs of living during unemployment. After writing the Office of Personnel Management, it and the National Archives and Records Administration have advised me that they are unable to locate my records. Because it will be at least 15 years before I can retire without penalty, and I have records, I don’t care. In the meantime, can I simply request this small loan of my own retirement money from TSP?
Q. I am separating from a covered law enforcement position after age 50, but before I attain retirement eligibility. I have an outstanding TSP loan that will become an early distribution. My understanding is that I will not be subject to the 10 percent penalty, but will pay income taxes on it. Can you confirm if this is correct? Also, I have a military TSP and will continue to contribute to it. Can I assume the loan repayment using those funds to avoid the distribution?
Q. I’m only 26 years old, with nine years of federal service. I recently was forced to resign due to unforeseen circumstances. After I pay off the outstanding balance on a TSP loan, and request a full withdrawal (single payment), to what percentage of my TSP balance am I entitled?
Q. Just got medically retired from the National Guard and was also retired from Defense Department technician service. I applied for a TSP loan while waiting for pension paperwork to be processed. I was denied because I’m no longer an employee. Is there an exception for retirees under 60?
Q. Do you have a follow-up on a way to leverage a TSP loan? I thought it might be a good idea to take out a loan against the TSP and put it into a real estate investment trust such as MTGE or CIM that pays pretty good dividends and have those dividends pay back the loan payments. Do you have any articles about leveraging a loan against the TSP?
Q. I have a Traditional IRA and a Roth IRA outside of the TSP. I am maxing out my annual TSP contributions and my annual catch-up contributions. Am I able to transfer both of the outside IRAs into the TSP without affecting my annual contribution limits?
Q. I about to start working as a new federal employer soon. When I do join the federal agency, I’m deciding if I should roll over my 401(k) from my previous employer to my new TSP account. The question that I have is if I need to take a loan on my TSP, would the funds I roll over to my account be eligible for a general or residence loan?