Cash out TSP/Def. Comp for home purchase???

[jazz4cash]

Not sure, but I think it was me that brought up the loan vs. withdrawal consideration. I did so ONLY because either action should only be considered when no other options are available and the loan is easier to reverse (i.e. early payoff) than the withdrawal. Also, the loan has no tax implications other than double taxation on the so-called "interest" which is trivial IMO. I always mention that these are not really loans since you are liquidating assets to produce the funds, and jdw fire has the right idea to liquidate a cash or bond fund assets to keep the true cost reasonable.

As far as TSP loan provisions, I see in the link Nords provided that TSP does have an extended repayment term for loans to fund a home purchase:
"
There are two types of loans:
• General purpose loan with a repayment period of 1 to 5 years. No documentation is required.
• Residential loan with a repayment period of 1 to 15 years. Documentation is required.
A residential loan can be used only for the purchase or construction of a primary residence. ......"

 

[zinger1457]

I take it from your post that you're under 59.5. If that's the case the only option you have to tap into your TSP is to take a TSP loan. You can only take an in service withdrawal if you're at least 59.5, and can only do it once. There are TSP hardship withdrawal provisions but buying a house is not one of them.