Q. I retired from active duty in December 2011. I accepted an appointment to a government service position in October 2011 and established a FERS Thrift Savings Plan account. I did not move any of my TSP account balance accumulated during my time on active duty into my FERS TSP account, so I currently have two accounts. Am I eligible to take out a loan against the TSP account balance still residing in my [previously]active-duty account? If not, can I transfer all or part of my [previously]active-duty account into my FERS TSP account with the goal of taking out a loan against my FERS TSP balance?
A. You must be in pay status to request a loan. Since you are no longer in pay status with respect to your uniformed services account, you cannot request a loan from your uniformed services account.
You may transfer your active-duty TSP account to your FERS TSP account subject to the following rules:
(a) An account balance can be combined with another once TSP is informed (by the participant’s employing agency) that the participant has separated from government service.
(b) Tax-exempt contributions may not be transferred from a uniformed services TSP account to a civilian TSP account.
(c) A traditional balance and a Roth balance cannot be combined.
(d) Funds transferred to the gaining account will be allocated among the TSP Funds according to the contribution allocation in effect for the account into which the funds are transferred.
(e) Funds transferred to the gaining account will be treated as employee contributions and otherwise invested as described at 5 CFR Part 1600.
(f) A uniformed service member must obtain the consent of his or her spouse before combining a uniformed services TSP account balance with a civilian account that is not subject to FERS spousal rights. A request for an exception to the spousal consent requirement will be evaluated under the rules explained in 5 CFR part 1650.
(g) Before the accounts can be combined, any outstanding loans from the losing account must be closed as described in 5 CFR Part 1655.
