withdrawals????

[satin89]

i am considering making a withdrawal to pay bills ..what is the best way???

 

[Harley69]

i am considering making a withdrawal to pay bills ..what is the best way???

If you are still employed, you may want to take out a loan, rather than actually doing a withdrawal. You don't have to claim a loan as income, like you do a withdrawal, and you'll be paying yourself back with interest. If you are under age 59 1/2, the only kind of withdrawal you have available is a hardship withdrawal which has 10% tax with held, 10% early withdrawal penalty and you can't contribute for 6 months. A loan is not reported to the IRS as long as you are still employed and paying it back. Payments come out of your check in addition to contributions. The only thing you lose is a $50 loan processing fee. Might be something to think about.

 

[Pschiffdicpal]

i am considering making a withdrawal to pay bills ..what is the best way???

Loan or hardship.....The one that causes the least amount of stress for you, there is a tax debt load with Hardship withdraw and with a loan a repayment is required .......if dont have a loan all ready... one is all thats allowed.

Good luck.

 

[satin89]

if you are still employed, you may want to take out a loan, rather than actually doing a withdrawal. You don't have to claim a loan as income, like you do a withdrawal, and you'll be paying yourself back with interest. If you are under age 59 1/2, the only kind of withdrawal you have available is a hardship withdrawal which has 10% tax with held, 10% early withdrawal penalty and you can't contribute for 6 months. A loan is not reported to the irs as long as you are still employed and paying it back. Payments come out of your check in addition to contributions. The only thing you lose is a $50 loan processing fee. Might be something to think about.

thank you i will consider that ...sounds like the best way ...

 

[satin89]

thank u very much for the info.... I did have one loan before like 5 years r so ago...does that matter????

 

[CapeChem]

If the loan is paid off..no problem.....You just can't have more than one loan at a time

 

[Silverbird]

Loans: Check on the TSP site and log in, it will tell you how much you can borrow, how much you will be paying back per pay period, what happens if you change the payback period, etc.