Buyouts and TSP loans

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Q: There is talk going around about a buyout for those eligible for early out retirement. I am eligible for early out retirement. Would the buyout be offered to someone who has a TSP loan? I know that a TSP loan must be paid off by time of retirement, and this is a plan that I would use (the buyout) to pay off the TSP loan.

A: Retirement buyouts are not contingent upon TSP loan status.

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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.

1 Comment

  1. u have 90 days to decide about loan, either u keep paying loan, or u have loan considered paid off an any amount owed as received in cash an u pay taxs on amount

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