18 Apr 2025
📊Proposed Changes to TSP Loan Reamortization Procedures
Procedures for Applying Payments to Principal and Interest Upon Loan Reamortization
Summary
The Federal Retirement Thrift Investment Board (FRTIB) proposes to amend a loan reamorization rule that requires payment of all accrued interest prior to allowing payments on the principal and current interest. Under the proposed rule, the Thrift Savings Plan (TSP) record keeper would combine the accrued interest with the outstanding principal when reamortizing a loan.
Agencies
- Federal Retirement Thrift Investment Board
Business Impact
$$ - Med
The proposed amendment to loan reamortization procedures will impact Federal employees utilizing TSP loans, affecting their payment structures. The changes may influence business owners and executives in the Federal employment sector, especially concerning financial planning and loan management.