TSP withdrawal


Q. I am 60 years old and plan on working until I’m 66. Can I take a first-time homebuyer loan from my Thrift Savings Plan as a down payment? If so, what form would I fill out? Do you happen to know how long it takes to get the money? Would I have to pay it back to the fund? Is there a penalty? I would not be taking any other payments out at this time.

A. You may take a loan from your TSP, which must be repaid, or it will be declared a taxable distribution. You’ll find the information you need at https://www.tsp.gov/planparticipation/loans/loanBasics.shtml.

If you haven’t already taken one, you could also consider taking an age-based, in-service withdrawal. The information you need for this is at https://www.tsp.gov/planparticipation/inservicewithdrawals/basics.shtml.


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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.

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