TSP loan/deployment

[Callme_CO]

I currently have a tsp loan out through my civilian job. My guard unit is looking like it's getting deployed. What will happen to this loan? will it start being paid off by my military income? put on hold till i return to work? considered a withdrawl and i get screwed?

 

[ChemEng]

Better call and ask. Big tax implications if this falls through the cracks.

 

[James48843]

What if I already have a TSP loan and I
am placed in nonpay status?

Because TSP loan payments are made through payroll
deductions, a period without pay will result in missed
payments unless you make direct payments from your
own funds, as described in the answer to the next
question.

If you go into approved nonpay status, the Internal
Revenue Service (IRS) allows your TSP loan payments
to be suspended for up to one year of the nonpay
period. However, interest will accrue while your payments
are suspended, so you may want to make loan
payments from your own funds directly to the TSP.


A special rule applies if you are a civilian entering
nonpay status to perform military service. In that
case, you will be permitted to suspend payments on
your loan until you return to pay status, even if your
civilian nonpay status lasts longer than one year. (You
cannot repay your civilian TSP loan by having loan
payments deducted from your uniformed services pay.)

However, to suspend your loan payments for more
than one year, you (or your agency) must provide the
TSP with proper documentation of your nonpay status.
When you begin your period of nonpay status, you,
your agency, or your service must submit one of the
following to the TSP:
● Form TSP-41 (for civilians) or Form TSP-U-41
(for members of the uniformed services), Notification
to TSP of Nonpay Status; or
● Form SF-50, Notification of Personnel Action;
or
● A letter on agency or service letterhead, signed by an
appropriate agency official, or your commander
or adjutant, and containing your name, date of
birth, and Social Security number; the beginning
date of the nonpay status; and the signature and
title of the agency or service representative providing
the information; or
● A copy of your military orders.
If, during your period of nonpay status, you receive
miscellaneous civilian basic pay (e.g., for medical,
annual, or military leave or for a retroactive salary
payment) in an amount large enough to cover a loan
payment, your agency may deduct a loan payment
from that pay.

If you are on approved leave without pay to work full
time for an employee organization under which your
TSP contributions may continue, or if you are on an
IPA assignment, your loan payments must continue.
See the chart at the end of this fact sheet for a summary
of the rules that apply to people in nonpay status who
have TSP loans.


Source: http://tsp.gov/forms/oc95-4w.pdf

 

[Callme_CO]

Thank you James for that information

 

[James48843]

Callme- you going to the mountains or the desert?

If the mountains- go get this guy for me, eh?

http://www.blackspotbooks.com/books/content/008.pdf

He's the one they say is "Detainee 008", who is now leading the taliban against the british in Afghanistan.

 

[Callme_CO]

wish i could for you but unfortunately i'll have nose-bleed section of the beach