Browsing: TSP loan

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. 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 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?

The Department of Labor recently enacted a rule requiring that “advisers” — meaning investment and insurance sales people — who offer “advice” to participants about their retirement accounts act as fiduciaries and accept the responsibility and liability that goes along with that role. In simple terms, this means that anyone who tells you to do something — anything — with your Thrift Savings Plan money, is obligated to put your interests ahead of all others. This poses a rather unpleasant problem for the “financial services” industry, which has built a massive profit generating machine upon a foundation that includes, as…