leaving federal service with a tsp loan

[smalltowncowboy]

i have an option to leave the federal system for a better job but i have a tsp loan out. ive seen that i cant leave until my loan is paid off but how does that work?

my question is what are my options to repay the loan back and still leave?

does it HAVE to be paidoff first?

will it just be paidoff when they close out my tsp?

will i have to keep making the loan payments before i can close out my tsp?

what are my options here? the loan is big enough that i cant just go get a small loan at a bank to cover it. i have tried talking to people at work about my options but still no help. and when i try to search on here i got nothing.

thank you
shawn

 

[Show-me]

You have to pay the amount back to your TSP account or it will get a 10% penalty for early withdrawal and the unpaid balance plus interest will be taxed as income.

 

[Show-me]

Your only options are,

1. Pay off the loan in full. Get another loan from a bank.

2. Be prepared to pay the 10% penalty and the taxes.

3. Don't take the civilian job.

 

[smalltowncowboy]

thanks for the info, that helped out a lot.