TSP Center

I am leaving the service after 22 years. I have approximaley 860k in my TSP account.

I have two loans in TSP that total 29k and 40k card in debt.

Asking for advice on how to make best use of my tsp balance until I find something else and if I should leave my balance in TSP.

Also, if there are any financial consultants you would recommend.

Thank you

Rob Berger website has a list: "A List of Low Cost Financial Advisors (Say NO to 1% Advisors)"

Thank you

Optimus187 wrote: ↑Fri May 16, 2025 1:44 pm I am leaving the service after 22 years. I have approximaley 860k in my TSP account.

I have two loans in TSP that total 29k and 40k card in debt.

Asking for advice on how to make best use of my tsp balance until I find something else and if I should leave my balance in TSP.

Also, if there are any financial consultants you would recommend.

Thank you

You have several issues & really not enough detail but some feed back base on my limited info/assumptions:
If you do not pay off the $29K within a specific amount of time it will be a taxable distribution and likely subject to 10% penalty for early withdrawal in addition to taxes.
Depending on your age you may you may have limited options based on the fact that you are leaving service and presumably not retiring, I'm not sure if you would be eligible for 72(t)/SEPP distributions
You can always withdraw from TSP and pay taxes & penalty if applicable.
I know people who have withdrawn retirement funds when they lose a job or to pay off credit card debt, but I wouldn't recommend it although it may be necessary in some cases if you don't have other income. Depending on the interest rate on the credit card, it may actually be better in the long run to withdraw the money and pay it off provided you don't keep running up more CC debt. Recommend you withdraw as little as possible. Luckily you have healthy balance and hopefully you will find other employment.
There are many threads on staying or leaving TSP, personally I like splitting it between TSP and Fidelity