TSP Loan Calculator: Should You Borrow from Your TSP?
Many federal and postal employees consider taking out a loan from
their Thrift Savings Plan (TSP) account to perhaps use as a
down payment on a new home, to remodel their current home, to pay off high
interest debt, or to use in a financial emergency.
But is a TSP loan a good idea?
What will it cost you in the long run? Will it jeopardize your future
retirement income? And, if so, by how much?
In response to many requests on this topic from My Federal
Retirement readers, below are some helpful articles and a link to the
TSP loan calculator that will assist you in making a decision.
- What
Federal Employees Should Consider About a TSP
Loan by federal benefits expert, Ed Zurndorfer.
- Important regulations
on repaying TSP
loans that are often overlooked
- Types
of TSP loans available to you
- 6 key rules for
borrowing from your TSP
- Other considerations
provided by the TSP
Helpful
Calculators
TSP Loan Calculator
The TSP Loan Calculator on the Thrift Savings Plan website
estimates loan payments based on the amount you want to borrow from your TSP
account, the current loan interest rate, and other factors. 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 access the TSP Loan Calculator, go to:
https://www.tsp.gov/planningtools/loan/loan.shtml Bankrate Calculator
BankRate.com has provided a free online calculator that can assist you in
finding out how much money (in terms of growth in your retirement
savings) you'll potentially lose while you are paying off a
loan from your TSP. (Note: while this calculator is for a
"401k loan", keep in mind that a 401k savings plan in the private sector is very
similar to the government's Thrift Savings Plan for federal and postal
employees.)
Go here to use Bankrate's calculator: http://www.bankrate.com/elink/calc/401kl.asp
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