treshman2000
New member
I recently left the Postal Service due to an injury, I have an outstanding loan of 6,000.00, I have a balance of 18,500.00. Will they deduct this loan and send me the balance? Thanks
-
Welcome to the TSP Talk Forums forums.
You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content, join our AutoTracker, and access many other special features. Registration is simple and absolutely free so please, join our community today!
If you have any problems with the registration process or your account login, please contact us. -
Please read our AutoTracker policy on the IFT deadline and remaining active. Thanks!
-
$ - Premium Service Content (Info) | AutoTracker Monthly Winners | Is Gmail et al, Blocking Our emails?
Find us on: Facebook & X | Posting Copyrighted Material
-
Join the TSP Talk AutoTracker: How to Get Started | Login | Main AutoTracker Page
-
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com ...
Or you can now use TapaTalk again!
Loan Repayment
- Thread starter treshman2000
- Start date
W
Wizard
Guest
treshman2000 said:
No. You have to request to have your TSP account closed.
I guess they will take your monthly loan payment out of your balance.
You probably should give them a call.
Good luck.
mlk_man
Banned
I believe that if you close your account you'll be asked to pay back your loan or you will not recieve the matching funds. This means that you may be losing out on $12000 and not just $6000.
M_M
*EDIT*- Here's some more info: http://www.401khelpcenter.com/loans.html
I may not have been correct on losing out on the matching funds but you may have to pay taxes on the full amount.
M_M
*EDIT*- Here's some more info: http://www.401khelpcenter.com/loans.html
I may not have been correct on losing out on the matching funds but you may have to pay taxes on the full amount.
mlk_man
Banned
This from another site:
Warning: Don't Default On Your Loan[FONT=Arial, Helvetica, sans-serif]
[/FONT]
This is crucial: if you leave your current employer, have no outstanding plan loans. Whether you find a new position or you are laid off, in most cases your plan loan will come due when employment ends. You will be given a limited amount of time to pay off your loan, and if you cannot repay it will be placed in default. "In default" means your employer will report to the government that you were unable to pay the loan, and the government will then treat the defaulted amount of your loan as a distribution. This most likely will lead to regular taxes on the defaulted amount plus for those under 59 1/2 the ten percent additional federal income tax penalty. Depending on your tax bracket and the tax rate of your state, you could be forced to pay the government as much as half of the defaulted amount. Some people take a cash advance on their credit card to pay off their plan loan when they change jobs, because 18 percent interest is still better than a 50 percent tax liability.
Warning: Don't Default On Your Loan[FONT=Arial, Helvetica, sans-serif]
[/FONT]
This is crucial: if you leave your current employer, have no outstanding plan loans. Whether you find a new position or you are laid off, in most cases your plan loan will come due when employment ends. You will be given a limited amount of time to pay off your loan, and if you cannot repay it will be placed in default. "In default" means your employer will report to the government that you were unable to pay the loan, and the government will then treat the defaulted amount of your loan as a distribution. This most likely will lead to regular taxes on the defaulted amount plus for those under 59 1/2 the ten percent additional federal income tax penalty. Depending on your tax bracket and the tax rate of your state, you could be forced to pay the government as much as half of the defaulted amount. Some people take a cash advance on their credit card to pay off their plan loan when they change jobs, because 18 percent interest is still better than a 50 percent tax liability.
Similar threads
