Web-Based Entry, Processing, Inquiry, and Correction System (EPIC Web)

097 TSP Loan Allotment

The TSP Thrift Savings Plan Allotment is a deduction made through payroll deduction for a loan made by a TSP Thrift Savings Plan participant against his/her TSP Thrift Savings Plan account. For more information refer to TSP Thrift Savings Plan Loans, for restrictions.

These allotments are deposited electronically through DD direct deposit/EFT electronic funds transfer. Eligible employees may elect in-service withdrawals in lieu of a loan allotment. See the Non-Automated Processing procedure manual located under the Manual Pay Processing publication category on the Publications page of the NFC National Finance Center Web site.

The TSP Thrift Savings Plan Loan Allotment is used to enter the TSP Thrift Savings Plan-22, Thrift Savings Plan Loan Payment Allotment Form, for Federal and non-Federal employees. The TSP Thrift Savings Plan Service Office enters the TSP Thrift Savings Plan-22 for Federal employees; Agencies enter the TSP Thrift Savings Plan-22 for non-Federal employees. TSP Thrift Savings Plan loan allotment data is displayed in IRIS Information/Research Inquiry System Program IR120, Thrift Savings Loan.

Loan amounts available are limited to the participant’s contributions to TSP Thrift Savings Plan and the earnings attributable to such contributions.

By law, loan application requests are restricted to the following:

• General Purpose Loan. General purposes loans can be obtained for any purpose. The repayment period for general purpose loans is from 1 to 4 years. Documentation to support requests for general purpose loans is not required.
• Residential Loan. Residential loans can be obtained for the purpose of purchasing a primary residence. The repayment period is from 1 to 15 years. Documentation to support requests for residential loans is required.

Before a loan is approved, the participant must complete the required documentation to request the loan.

Note: The TSP Thrift Savings Plan Loan Allotment TSP Thrift Savings Plan 22 entry is for NFC National Finance Center personnel only.

To Apply for a Loan:

• The participant completes and submits Form TSP Thrift Savings Plan-20, Loan Application to the TSP Thrift Savings Plan Service Office.
• Upon receipt of the loan application, the TSP Thrift Savings Plan Service Office sends the participant a loan package which includes:
  • TSP Thrift Savings Plan-21-G, Thrift Savings Plan Loan Agreement/Promissory Note.
  • TSP Thrift Savings Plan-21-R, Residential Loan Documentation Form, for residential loans only. The participant must provide copies of the purchase contract, settlement sheet, or other documents to show the cost of the residence.
• If the term of the loan is not acceptable by the participant, the loan agreement may be canceled by checking the appropriate block on the TSP Thrift Savings Plan-21 and returning it to the TSP Thrift Savings Plan Service Office within 45 days.
• If the terms of the loan are acceptable by the participant, the forms should be completed and returned to the TSP Thrift Savings Plan Service Office within 45 days for approval.
• A check is issued to the participant after the loan is approved.
• Once the allotment is processed, it is forwarded to the appropriate personnel office. An acknowledgment notice is also provided to the TSP Thrift Savings Plan Service Office verifying the allotment was processed.