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