tax ? Thrift Savings Plan Early Withdrawl

[Ericandjenng]

I have TSP and I'm surprised they were able to 'withdraw' rather 'borrow' a large sum of money. TSP has alot of strict rules about pulling money from your account.

 

[rparmfamily]

I have TSP and I'm surprised they were able to 'withdraw' rather 'borrow' a large sum of money. TSP has alot of strict rules about pulling money from your account.

Depends on who you are. Active duty can "borrow", I posted a link about it.

 

[Purseval]

Depends on who you are. Active duty can "borrow", I posted a link about it.

Her husband is a civilian. I don't work for the government so I don't know much about the rules for thrift accounts but, since they got the money out, then it obviously can be done. The wisdom of doing it that way is a different story and I don't really know the details of why they did it that way.

I think the problem here is coming up with that large balance by 4/15. Not many folks can scrape up $40K in 2.5 weeks.

Getting the money won't be a problem, it's the paying it back that will hurt. No WDW vacations for them, not for a long time, this is the mother of all budget busters