TSP Loans Explained: Rules, Risks, and Retirement Consequences Every Federal Employee Must Know

A TSP loan may feel like easy money. After all, it is your money. But for federal employees under FERS or CSRS, borrowing from your Thrift Savings Plan can quietly derail your retirement if you do not understand the rules, risks, and long-term consequences.

In this episode of Federal Benefits Explained, Andrew McNair breaks down:

• How TSP loans really work
• The difference between general purpose and residential loans
• Loan limits and interest rates
• The hidden cost of lost compounding
• Tax penalties if you default
• What happens if you retire with a loan outstanding
• When a TSP loan may be appropriate and when it is not

If you are considering borrowing from your TSP or simply want to understand how it could impact your FERS retirement income, this episode will give you clarity and confidence before you make a decision.

Retirement is not just about saving well. It is about protecting what you have built.

If you would like a personalized Federal Retirement Benefits Report, call or text 1-800-848-8768 to schedule a complimentary Discovery visit.

If you’d like help reviewing your TSP allocation or creating a personalized federal retirement strategy, schedule your complimentary visit today: https://calendly.com/swancapital_/nocostconsultation

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.