9 Jul 2025
💰New Regulations on TSP Loan Reamortization Impacting Federal Employees
Procedures for Applying Payments to Principal and Interest Upon Loan Reamortization
Summary
The Federal Retirement Thrift Investment Board (FRTIB) is amending a regulation to require the Thrift Savings Plan (TSP) record keeper to combine the accrued interest with the outstanding principal when reamortizing a loan.
Agencies
- Federal Retirement Thrift Investment Board
Business Impact
$$ - Med
The regulation revises TSP loan reamortization procedures, increasing potential loan costs due to compounded interest. This may affect participants' financial decisions and provide insights for businesses regarding employee financial wellness.