Government 401k (TSP) Loan

[Matt Madalis]

Has anyone ever taken a short-term loan from their Thrift Savings Plan (TSP) to fund things such as rehab costs? (For those unfamiliar, the TSP is the Federal Government 401k plan) I have done some research so I know its possible. Hoping to hear from others if you have done it: how easy was the process? Was it worth the effort in the end?

Thanks!

[Amy E.]

Yep, I did. It was crazy easy.  Well, in typical gov't fashion it was a little stupid.  If you wanted the money auto-deposited I think you had to get the form notarized.  But if you wanted a physical check you could do it online.  And if you're married, you have to get forms notarized either way because your spouse is supposed to agree to it.

I am one of those silly people who listened to the personal finance gurus who said to put all my money in a 401k (commercial equivalent of the TSP, which is a 403b). I could retire right now if I had just put the money in a taxable account and had access to it....

Anyway, it was really easy. The only downfall is that now that I want to expand my business I have to look at more conventional loans through banks and I just can't bite the bullet and actually pay somebody ELSE interest....so far I've bought three houses paying only myself (and business partner) interest. You get kinda spoiled with the TSP loan.