Question: Can I Pay My TSP Loan Off Early?

Are TSP loans bad?

The Downside of Borrowing From Your Thrift Savings Plan You won’t earn any interest on the outstanding loan amount, which will affect your long-term retirement savings.

Instead of earning interest on your retirement savings, you’ll have to pay interest as you replace the funds you’ve borrowed..

How much of my TSP can I borrow?

To borrow from your TSP account, you must be a Federal employee in pay status. If you qualify for a TSP loan, the maximum amount you may be eligible to borrow is $50,000; the minimum amount is $1,000. To find out the amount you have available to borrow, visit TSP Loans in the My Account section.

Does TSP loan affect credit score?

When borrowing from the TSP, you are borrowing your own money, there is only a $50 fee, it doesn’t impact your credit score, and you only pay interest equivalent to the G Fund’s returns (and you are repaying that interest to yourself).

How do I withdraw my TSP early?

To request a withdrawal, log into My Account and click on the “Withdrawals and Changes to Installment Payments” link on the menu. From there you’ll have access to an online tool with which to start your withdrawal.

How do you repay a TSP loan?

If you meet the loan eligibility rules and your loan request is approved, the loan amount is removed from your TSP account. You must repay your loan with interest. Generally, loans are repaid through payroll deductions. Your repayments restore the amount of your loan, plus interest, to your account.

Can I stop paying my TSP loan?

The maximum period that we can suspend your loan payments is one year. If your nonpay period exceeds one year, your loan will be automatically reamortized and you must make payments from your personal funds to avoid being in default.