How to Borrow From a TSP Account

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The Thrift Savings Plan, or TSP, is a government-sponsored account available to federal employees to save for retirement. The federal government matches a portion of an employee's contribution to his TSP account, and contributions are tax-deferred until the income is withdrawn after retirement. You can borrow money from your own TSP account by filing the appropriate forms.

  • Review borrowing rules at the TSP website. TSP account holders can borrow a maximum of $50,000. However, the amount you can borrow may be less depending on how much money is currently in your TSP account and whether you have outstanding TSP loans already.

  • Use the online TSP loan calculator to estimate your payments. As with any commercial loan, loans from your TSP account must be repaid on a fixed schedule.

  • Fill out and submit the proper form. Use Form TSP-U-20 if you are in the uniformed services. All other federal employees use Form TSP-20 for their loan request. You can mail the form to Thrift Savings Plan, P.O. Box 385021, Birmingham, AL 35238 or fax it to 1-866-817-5023.

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