VERA & TSP loan


Q. I am thinking of applying for a VERA/VSIP my current federal employer is offering. I have a TSP loan with a balance of $25,500, which I am still paying. Can I still apply for this early retirement if I have a TSP loan balance? If so, how do I continue to pay that loan?

A. An outstanding TSP loan will not prevent you from applying for a VERA. You must repay the loan within 90 days of separating from service or the remaining balance will be declared a taxable distribution. You will have to write a check for the outstanding balance after your payroll deductions end.


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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 and view his blog at

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