WebThe interest rate on a TSP loan is nearly irrelevant from an overall perspective because regardless of what it is you're paying it to yourself. TSP loans that make sense are going to make sense whether the interest rate is 0% or 30%. The actual cost is the opportunity cost - in the examples above the full 20%, 7%, etc. chemspastic • 4 yr. ago. Web2 Aug 2024 · So, if you have a $30,000 TSP balance, you can take out a loan of up to $15,000 max. If you have a $200,000, you can take out up to $50,000. You must pay interest on …
TSP Loan - Dangers of Taking a Thrift Savings Plan Account Loan
Web24 Oct 2024 · IRS early withdrawal rules let you take out up to $10,000 of investment earnings penalty-free to fund the ... IRA withdrawal rules allow you to take money penalty-free for qualified higher ... Web20 Jan 2024 · Assume an ending TSP balance of $500,000. (Most employees getting ready to retire that I have spoken to recently have at least this balance). At a 4% withdrawal rate, … job duties for a forklift operator
TSP Withdrawal Options - Federal Employee
Web3 Nov 2024 · The first option listed above — withdrawing all your money as a lump sum — exposes 100% of your Traditional TSP balance to federal income taxes (and possibly … WebIf you take out a TSP loan, the government will garnish some of your wages to pay it with interest. While the interest will be paid into your account, that means you will be getting less money than you have now. You will also not be earning dividends on the funds that were loaned to you, so that is a further loss of money. WebThe 10 percent tax applies to the taxable portion of the cashout. For example, if you cash out a Roth TSP account with $18,000 of contributions and $7,000 of earnings, the penalties only apply to ... instrument music maker for pc