Q. I have a balance of $15,000 on my TSP loan. If I stop payment because of hardship, will I be penalized 10 percent? I realize I will have to claim it as income, but the $500 extra would really help me.
Browsing: 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?
Q. I currently am a GS employee and have a TSP residential loan; however, I may be transferring to an Overseas NAF job. Does anyone know if I can continue to pay on my TSP loan or do I have to pay it back to avoid penalties? I know NAF is federal but unsure about the TSP aspects.
Q. I am a few months from retirement. I have a small residential loan (circa $6,000) that I am still repaying, but would also like to take out some more money from the TSP via a general purpose loan just before retirement. This seems worth it to me, even with the eventual tax liability because I could use the extra cushion while my retirement income stabilizes with OPM. I am over 55, so am only going to have to pay the loan values at my regular income tax rate, money which I will set aside. My TSP account is very healthy, as is…
Q. I have a current loan that I am paying on in my TSP account. I am going to retire in May 2018 and I have already made a in service withdrawal from my TSP account. I will be 86 years of age when I retire, with more than 28 years of service. Is it possible to take a withdrawal to pay for the outstanding loan in the amount of $18,000? I do have a balance in my TSP account of more than $320,000. I have no other way to obtain these funds.
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’m planning on retiring June 2018. I have 38 years of service at age 57 with and outstanding TSP loan of $20,000. Will I get penalized if my load is not repaid? And can I withdraw the rest of my TSP once I separate?
Q. Could you tell me how a large loan against my TSP will be treated when I retire? I still owe $30,000 and am considering retiring soon. Am I penalized and taxed on those funds? If so, are there any ways around that?