Tsp loan how much can i borrow

You may be able to avoid taxes and penalties by rolling over your taxable distribution into an IRA or employer-sponsored retirement fund. But there are some downsides to borrowing from your TSP account. And if the rate of return on investments in your account is higher than your interest rate, taking out a loan will mean you miss out on those higher earnings. Also, your interest payments are not tax deductible. Because borrowing from your account can lead to having less money for retirement, you may want to consider other types of loans before drawing on your retirement savings with a TSP loan.

Compare the costs to the APR of other loans, such as mortgages and personal loans. And take a look at credit cards that you might be able to use to cover general purchases instead particularly credit cards with a low intro APR offer. Weigh the costs and benefits of each financing option before making a decision, and make sure that the loan or credit card payments fit into your budget. Image: Businesswoman talking on phone at the office. In a Nutshell Federal employees and members of the uniformed services may be eligible for a Thrift Savings Plan loan.

A TSP loan allows you to borrow from your retirement savings to buy a house or pay for other things, but it can lead to having less money overall in your TSP account.

If you have both a civilian account and a uniformed services account, you may have one of each type of loan for each account. This will depend on how often you are paid biweekly or monthly, for example. If you are uncertain, check with your personnel or finance office. Contact your personnel or payroll office if you do not know the number of salary payments you will receive for the remainder of the year.

It is not intended to be used as an investment advisory tool or as a guarantee of a final account balance. Please note that the results shown at the end of this calculator assume that elected contributions are made for the entire year. Results do not take into account the following Internal Revenue Code IRC limits: elective deferral , section c , and catch-up contribution.

Estimate loan payments 1 2. Loan details Results. Select your employment category: Civilian Uniformed Services. Loan amount you wish to borrow:. The Thrift Savings Plan, like most employer sponsored defined contribution plans, allows participants to take loans while still working. The following fourteen items are important to know. If you have repaid a loan within the last 60 days, or if you have received a taxable distribution of a loan within the last 12 months, you cannot initiate a new loan.

The new limit applies for loans taken within days of March 27, A qualified participant for the purpose of the above is an employee participant who has been diagnosed with, or who has a spouse or dependent who has been diagnosed with COVID by a CDC approved test; or any employee participant who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, having reduced hours as a result of the COVID emergency, or who is unable to work due to lack of child care due to the disease.