Browsing: TSP loan

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…

Q. I just retired from the U.S. Postal Service as a FERS employee at 56 years of age. I have two outstanding loans against the TSP. My question is that if I elect not to pay them off within the 90 days and pay the tax on it for 2018, would that count as earned income against the $17,400 I am allowed to earn before being penalized on my Social Security supplement bridge? I am guessing that I would only be penalized 10 percent for early withdrawal in which case it still might be best for me to pay it off as…

Q. I have a current loan that I am paying on in my TSP account. I am counting the days until I am 59 1/2 so I can make a withdrawal. Am I allowed only one lump sum withdrawal or, if I take a withdrawal while I am working, can I take another withdrawal when I retire in 4+ years? Is there a cap on the amount I can withdraw in my lump sum amount? Can I withdraw when I have a current loan with the intent of paying off the loan?

Q. I am planning to separate from the U.S. Postal Service and would prefer a full withdrawal of my TSP balance. I have an outstanding loan that I cannot pay off and would prefer to just pay the taxes and any penalty. Do I have to wait the full 90 days for this loan to go into default, or can I request that an immediate taxable distribution be declared and have the loan closed? When the loan is closed, do I need to pay the taxes/penalties then or would I just declare them when I file my taxes at year…

Q. I am 67 with $360,000 in TSP and 29 years of federal service. I am also $26,000 in credit card debt at 16 percent annual interest rate. I am vacillating between an age-based in-service withdrawal and a 2.35 percent TSP loan to pay off the credit card debt. Finance-wise, I suppose it makes sense to pay off the credit card with the TSP loan, ($630/mo over 5 years versus $460/mo), but what I’d really like to do is get rid of the debt entirely and not have it hanging over my head at all! I am aware of the…

Q. I owe for service credit when I withdrew my CSRS retirement in 2000. I did return to the government in 2003 and I’m now CSRS Offset. With interest I owe about $78,000. I have recently started making payment so I can receive the credit. I’m 56 and I hope to work until I’m 60. Since the interest continues to accumulate and I don’t have funds to make very large payments, I’m wondering if it would be wise to take out a TSP loan to pay down some of what I owe? If I do retire at 60 would any…

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