097 TSP Loan Allotment
The TSPAllotment is a deduction made through payroll deduction for a loan made by a TSP participant against his/her TSP account. For more information refer to TSP Loans, for restrictions.
These allotments are deposited electronically through DD/EFT . 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 Web site.
The TSPLoan Allotment is used to enter the TSP -22, Thrift Savings Plan Loan Payment Allotment Form, for Federal and non-Federal employees. The TSP Service Office enters the TSP -22 for Federal employees; Agencies enter the TSP -22 for non-Federal employees. TSP loan allotment data is displayed in IRIS Program IR120, Thrift Savings Loan.
Loan amounts available are limited to the participant’s contributions to TSPand 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.
To Apply for a Loan:
- The participant completes and submits Form TSP-20, Loan Application to the TSP Service Office.
- Upon receipt of the loan application, the TSP Service Office sends the participant a loan package which includes:
- 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-21 and returning it to the TSP 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 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 Service Office verifying the allotment was processed.