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Updated almost 6 years ago, 02/17/2019

User Stats

57
Posts
75
Votes
Kent Hall
  • Rental Property Investor
75
Votes |
57
Posts

Borrowing against a Thrift Savings Plan

Kent Hall
  • Rental Property Investor
Posted

Hey everyone, sorry if this has been asked many times before. I did a quick search, and found some people who said they had borrowed against their TSP for real estate investing purposes, but I was wondering if I could pool the hive mind for some more details on the process.

When borrowing from the TSP do you arrange it through the TSP or is it a 3rd party lender with the TSP as collateral?

I keep hearing that you pay yourself the interest. What is the amoritization time frame? How do you pay yourself back (is it a monthly or bimonthly payment, is it taken directly out of your check like a withholding? What kind of monthly payments were you looking at when borrowing the full 50k?

When the money is out of the TSP I am assuming it is no longer acquiring the gains/losses from sitting in its fund. Is that correct?

Can this process be repeated? As in, once you have paid yourself back, can you (and if so when can you) pull the money back out again?

Thank you so much for the time. 

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