Retirement and TSP


Q. I am a single/divorced female, 58 years old, and I have 38 years of federal civilian service. I retired December 30, 2017, with a small outstanding TSP loan balance – less than $900. I have about $55,000 in my TSP. I had previously left the federal service (eight years ago) and used my TSP balance earlier in my career. When I reentered the federal civil service I reinvested in TSP and currently have a balance amount of $55,000.

I’m considering requesting the full amount of my balance. Will I be penalized if I do not pay this small loan back individually and instead request the full amount of my TSP balance all in one payment – less the loan amount owed and taxes that they withdraw? Will I be penalized in requesting the full loan at age 58?

A. Your future TSP distributions will be exempt from the early withdrawal penalty.


About Author

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 and view his blog at

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