The answer i was looking for wasn't answered. How much can you borrow? 100% of your own contributions ( what you put in ) ? 50% of your own contributions amount? Or 50% of your vested amount?
Depending on your contributions and the earnings on those contributions, it could be a percentage or a dollar amount. The best way to find out your specific borrowing limit is to log into your TSP account or call the ThriftLine.
Interesting, so I can’t take a loan if I’m in the C fund? Also what if I moved my money into the lifecycle fund, would I then be able to take the loan of 10,000$?
You can borrow money that is invested in any of the 5 individual funds which include the C, F, G, I, and S Funds, as well as anything in the lifecycle funds. The only money that you are restricted from borrowing against is money in the Mutual Fund Window.
You may have up to two loans outstanding at one time. You can have one general purpose loan and one primary residence loan at the same time, or two general purpose loans. Once you pay off a loan, you can get another one later, but if it's within 12 months, it could affect how much you're eligible to borrow.
Your repayment amount will be calculated for you and will be automatically deducted from your pay check. If you want to pay the loan off faster, you can also make extra payments directly to the TSP.
How do you know what the repayment period would be for a general purpose loan (looking to know exactly how long within the 1 - 5 years)? Also, is there a calculator for figuring out what the repayment amount will be per pay period before applying so have some idea before if it's even worth entertaining)? I can look up the current G Fund rate and know how much want to borrow, but don't know the repayment period to calculate the payments. Is it simple interest or compounded? Thx.
The TSP website used to have a loan calculator for estimating payments based on the loan amount, term, and interest rate. Now, I think you need to log into your TSP account to access it. You can choose a repayment term between 12 and 60 months to see what fits you best.
Great Vid! I plan to get another federal job after retiring however the 180 day rule will apply so what will that look like for me with still having a loan and not being able to start the other federal job until 180 days out?
If you're retiring from the military, you will have a separate TSP account for your civilian service. After separation, you can continue to pay on your loan by making direct payments to the TSP. If you do not pay off the loan in full or begin making payments by the deadline that the TSP gives you, the outstanding balance and accrued interest will be treated as taxable income.
I saw somewhere… that if you take a 401k loan, the interest on the loan is paid back to yourself, directly into your 401k. Is that true? Does the same apply to the TSP if so?
I retired from the US Post office in 1999. On disability and stayed on disability retirement for 24 years until I turned 62 in 2022 October how can I receive my funds for the 12 years and 9 months , and the matching government funds?
You can not voluntarily change the term and payment amount of your existing TSP loan. But, you can make extra loan payments in addition to your payroll deductions to payoff your loan faster.
I'd like more information on paying it back. You said that the money is deducted from my checks, but do I choose how much is deducted from each check or is it automatic? What is the default rate of deduction? When mentioning the qualifiers. How do I know how much I have contributed compared to how much was matched? Thank you for the information. If I may offer one criticism, it's that the music is way louder than you were. I had to turn it down not to disturb the neighbors, then turn it up to hear you, and turn it down again at the end.
The amount deducted from your check will depend on three factors: the initial loan amount, the current interest rate which is based on the G-Fund, and the repayment term period. Your quarterly TSP statement will indicate your contributions, the automatic 1% contribution, and the government matching amount. Also, thank you for feedback on the sound.
The funds that remain in your TSP account will still earn money. The loan repayments which include interest will also earn money as they are paid back.
If you don’t have the financial resources or capacity to repay the loan, then the hardship withdrawal could be a better option. But, a TSP loan is oftentimes better due to less documentation, no immediate taxes, and ability to pay back the distribution.
Your TSP contributions are vested immediately. The $1,000 minimum includes your contributions in either the Traditional or Roth account, or the combined total between the two.
@@TheMoneyBriefing Okay, I keep seeing mixed things about being able to get the full balance of your TSP on a loan. In that same scenario what's the max you can borrow?
@@taylorf4206 The max you can borrow is based on the smallest amount of 3 different "tests" that the TSP uses. I can't give an exact number because the max will depend on your contributions and earnings on those contributions; not the full TSP balance which also includes government contributions.
I'm reciveing full retirement as of 10/15/2022 at 62 total retirement for 36 years and 9 months I think I should be able to get my TSP government funds at 63 now.Help me
You can contact the Thrift Savings Plan at 1-877-968-3778. They can help you either take a direct withdrawal from the account or you can transfer the account to an IRA and take distributions.
