Thread: TSP Total Balance vs. Amount available for Loan

Maximum loan amount.

TSP and Internal Revenue Service (IRS) rules
limit the amount you can borrow. The principal amount cannot exceed
the smallest of the following:

(1) your contributions and their earnings in your civilian or uniformed
services account (that is, the account from which you
are taking the loan), not including any outstanding loan balance
(the Contributions and Earnings Test);

(2) 50 percent of your total vested account balance (including any
outstanding loan balance) or $10,000, whichever is greater, minus
any outstanding loan balance (the IRS Vested Balance
Test); or

(3) $50,000 minus your highest outstanding loan balance, if any,
during the last 12 months (the IRS $50,000 Test).