TSP Loan Disapproved?

[triplethreat01]

I have 3500 in my TSP account and wanted to take out a 2000 tsp loan. I sent in the application via mail and everything looked (to me) as if it was going to be fine. However, my loan request was disapproved and I have no idea as to why. Any ideas as to why it might have been disapproved? Isn't this my money? I read the TSP loan booklet and could find no reason for my request to have been disapproved. Any guidance/thoughts would be appreciated.

 

[roskopfm]

I would start with calling them to find out why.

 

[wv-girl]

I have 3500 in my TSP account and wanted to take out a 2000 tsp loan. I sent in the application via mail and everything looked (to me) as if it was going to be fine. However, my loan request was disapproved and I have no idea as to why. Any ideas as to why it might have been disapproved? Isn't this my money? I read the TSP loan booklet and could find no reason for my request to have been disapproved. Any guidance/thoughts would be appreciated.

Don't they only allow a certain % for loans? Maybe your request was too high? i.e >50% of your total balance?

 

[Frixxxx]

I have 3500 in my TSP account and wanted to take out a 2000 tsp loan. I sent in the application via mail and everything looked (to me) as if it was going to be fine. However, my loan request was disapproved and I have no idea as to why. Any ideas as to why it might have been disapproved? Isn't this my money? I read the TSP loan booklet and could find no reason for my request to have been disapproved. Any guidance/thoughts would be appreciated.

Two things:

1. Log into tsp.gov and access your account. Click on loans. See what is available. If it is less than 2K, then you can't take that much out.

2. Um, with 3500 in your account, do you really need that money? I mean that's your nest egg and you seem to be cracking the shell a little early.

 

[Pill]

Not for sure what the cut off is, but I think you can only tap half of what you have put in not including their match. So looking at your numbers I would guess $1500 of less is all you can touch.

Like someone had stated already I wouldn't make a habit of touching your retirement account, but I also understand circumstances that require you too. I had to do if for a move when I was a new federal employee. I needed every bit of that $800 they allowed me to tap. Speaking of that doesn't it tell you how much is available for the loan on the website as you go through the process. Also if you are married I think you need spouse approval to tap the money.

Good luck and remember to contribute enough for your retirement and try to increase it each year and raise. They say 10% covers basic, 20% you can retire early. I don't remember who they are but I read it somewhere.

 

[dannyboy]

Try To Be Open-minded Friend,
You may want that monery to take care of some ankle biter that hurts, right now. Why not say "Let's just pretend that TSP really isn't there and that I've got what I got and I've got to deal with it". I was here before and it's not worth ever taking money out of your TSP Account. Once you do that once, you'll keep going back to it over and over again, guaranteed. Get another job, develop a ponsy scheme, do whatever but this money you need in the future. The most critical time in getting a healthy balance is when you are just starting up. I think that if you just tighten your belt, give up some extra's that aren't needed, you'll be amazed at how things take care of themselves. I'M GETTIN OFF THE SOAPBOX.
As I have read in other replies to your question they are correct. For a non-emergency personal loan this maxes out to 50% of your current balance from a person who has taken out loans before.

 

[James48843]

I have 3500 in my TSP account and wanted to take out a 2000 tsp loan. I sent in the application via mail and everything looked (to me) as if it was going to be fine. However, my loan request was disapproved and I have no idea as to why. Any ideas as to why it might have been disapproved? Isn't this my money? I read the TSP loan booklet and could find no reason for my request to have been disapproved. Any guidance/thoughts would be appreciated.

You asked for too much. You are only permitted to take, as a loan, up to 50% of the vested amount of your account balance.

All the rules are in the TSP loan booklet, which is available on the TSP website.

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Maximum loan amount. [FONT=HMDZIZ+Novarese-Book,Novarese]TSP and Internal Revenue Service (IRS) rules limit the amount you can borrow. The principal amount cannot exceed the [/FONT][FONT=VTZERX+Novarese-BookItalic,Novarese]smallest [/FONT][FONT=HMDZIZ+Novarese-Book,Novarese]of the following:
(1) your contributions and their earnings in your civilian [/FONT][FONT=KRTKTT+Novarese-Bold,Novarese]or [/FONT][FONT=HMDZIZ+Novarese-Book,Novarese]uniformed services account (that is, the account from which you are taking the loan), not including any outstanding loan balance (the Contributions and Earnings Test);
(2) 50 percent of your total vested account balance (including any outstanding loan balance) or $10,000, whichever is greater, minus any outstanding loan balance (the IRS Vested Balance Test); or
(3) $50,000 minus your highest outstanding loan balance, if any, during the last 12 months (the IRS $50,000 Test).
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