5 CFR 1604.10 - Loans.
prev | next
A service member may be eligible for a TSP loan as described at 5 CFR part 1655, with the following exceptions:
(a) Separate accounts. If the TSP maintains a service member account and a civilian account for an individual:
(2) A participant may have no more than two loans outstanding from each account at any time; one loan from each account may be a loan for the purchase of a primary residence;
(3) The Internal Revenue Code maximum loan amount test, which is described in 5 CFR part 1655, will be applied using the combined balances in both TSP accounts.
(b) Spousal rights. Before a loan agreement is approved for a service member account, the participant's spouse must consent to the loan by signing the loan agreement. A request for an exception to the spousal consent requirement will be evaluated under the rules explained in 5 CFR part 1650.
(c) Combat zone contributions. The portion of a loan that is attributable to combat zone contributions (if any) will be determined when the loan is declared a taxable distribution, and that portion will not be reported as taxable income to the participant as a result of the declaration.
Beta! The text on the eCFR tab represents the unofficial eCFR text at ecfr.gov.
This section’s status may have changed. It may have been renumbered, reserved, or removed.