6 Key Rules to Borrowing from Your Thrift Savings (TSP) Account

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You can borrow from your TSP account if:

  • You have at least $1,000 of your own contributions and associated
    earnings in your account. Agency contributions (and earnings on that money) cannot be borrowed.
  • You are currently employed as a Federal civilian employee or member of the uniformed services. (Separated or retired participants and beneficiary participants are not eligible.)
  • You are in pay status. (Loan payments are deducted from your pay.)
  • You have not repaid a TSP loan (of the same type) in full within the past 60 days.
  • You have not had a taxable distribution on a loan within the past 12 months, unless the taxable distribution resulted from your separation from Federal service. (See page 10 for more information on taxable distributions.)
  • You can borrow from your TSP account even if you have stopped contributing your own money.

Source:  TSPBK04 (5/2012)