Many federal and postal employees consider borrowing from their TSP (Thrift

Savings Plan) -- 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, here are some pointers (with a link below to a free

online calculator that might provide some help in making

the decision).

• href="http://www.myfederalretirement.com/public/134.cfm">Important regulations

   on repaying TSP loans that are often

  overlooked 

• Types of

  TSP loans available to you 

• 6 key href="http://www.myfederalretirement.com/public/131.cfm">rules for

  borrowing from your TSP 

• Other href="http://www.myfederalretirement.com/public/130.cfm">considerations

  provided by the TSP 

Free Online Calculator:  Should You Borrow

from Your TSP?

BankRate.com has provided a free online calculator that can assist you in

making a decision.  While the 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 the calculator:  href="http://www.bankrate.com/elink/calc/401kl.asp">http://www.bankrate.com/elink/calc/401kl.asp