Author Topic: TSP or 401K  (Read 980 times)


  • 5 O'Clock Shadow
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  • Posts: 1
TSP or 401K
« on: September 07, 2014, 08:53:28 PM »
Hello all,

Newbie here.  I'm trying to figure out the best way to go about this question.  I went from full-time to part-time on a job and have a 401K loan with a $8000 balance paying $151 per pay period @4.5% interest.  I have a total of about $65K in the 401K.   The loan was not due Paid in full when changed my status.  I am now a federal employee and now have TSP.  The interest on a TSP loan would be 2.125% with a $50 loan fee and I have about 26K in the TSP. 

Should I leave things the way they are or take a TSP loan to pay off the 401K loan? Why?

Thanks in advance



  • Bristles
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  • Posts: 290
  • Location: Moose Scrotum, Alberta
  • Retired at 44.....back to work at 45
Re: TSP or 401K
« Reply #1 on: September 08, 2014, 08:25:17 AM »
What does the math tell you?  This question is easily answered when you plug the numbers into a basic excel spreadsheet that you can create.