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  • Starting in January 2021, we’re making the process easier for participants. If you’re turning 50 or older and are eligible for catch-up, you’ll no longer need to make separate catch-up elections to your TSP account. To learn how to make these contributions next year, visit Catch-up contributions.

Loan basics

As a TSP participant, you’re allowed to borrow from your TSP account. While you might be tempted to take a TSP loan, you should consider the effects that taking out a loan will have on your retirement savings. It might cost you more than you think.

When you take a TSP loan, you deplete your balance. That means you miss out on the compound earnings from those savings had they remained in your account. Not only that, you must repay your loan with interest and the loan fee is deducted from the total loan amount.

Remember: The purpose of contributing to the TSP is to provide you with income in retirement, so it pays to think twice before you take a TSP loan.

The interest rate for new loans is --%.