TSP Loans

TSP LoansThe Thrift Savings Plan (TSP.gov) is a savings, retirement and investment vehicle available to federal and postal employees.  Although different guidelines for FERS and CSRS, the TSP loans are nonetheless a supplement to grow your retirement wealth and retirement income. 

Your TSP.gov account is structured so that participants may take out TSP loans from their TSP.gov account.  There are two types of TSP loans – a general purpose TSP loan which has a 5 year term limit and a residential TSP loan carrying a 15 year term.  You can change the amount of your payments up or down (re-amortize) as long as it is within the period or term of the TSP loan.

Individual borrowers are responsible for making TSP loans payments on time.  It is important to always check your quarterly participant statement to make sure your TSP loans payments are being made and made on time.  Generally TSP loan payments are payroll deductible; many things might happen that can change when the payments are being deducted.  Your pay cycle may change or you may transfer to another agency or assignment and deductions from your pay may be delayed.  It is still your responsibility to make sure the payments reach your TSP.gov account in a timely manner.  You may pay by personal check or money order directly to the TSP with a payment coupon (TSP-26).  Include your TSP loan account number, your loan number and the TSP-26 to make certain that you are properly identified and payments are credited to your account.

Missing a payment on your TSP loan could have tax consequences.  If you do miss a loan payment the TSP loan will notify you of the missed payment and you will have until the end of the following calendar quarter to rectify the problem. You cannot suspend your TSP loan payments nor stop them.  If you witness a financial hardship, you should consider recalculating (re-amortize) your TSP loan to an amount you can afford.

TSP Loans

For information on TSP Fund choices click here

Additional TSP Considerations

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