By Mike Miles
August 27th, 2013 | Uncategorized
Q. In February 2012, I took a loan of $50,000 from my Thrift Savings Plan account to make a down payment for the joint mortgage with my spouse for our first home.
In July 2013, my spouse refinanced our home in her name. I am off the title of this home and do not make any more mortgage payment. In return, among other items, I will receive back $50,000 of my contribution using my TSP account. TSP loan is only for primary residence purpose. Do I have to immediately make the payment to the balance of my TSP loan when I am now neither on the title of the home nor on the new mortgage loan? Could I use this money to buy another home for myself while still making monthly payment to my TSP loan?
A. To the best of my knowledge, there is no requirement to accelerate repayment of your loan under the circumstances your describe.
Tags: TSP loan