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View Full Version : Any TSP Benefit for First Time Home Buyer?



seniorsal
10-07-2006, 01:06 PM
I am planning to retire next year. I hope to buy my first home soon after retirement. If I take all or part of the money from my TSP for the purchase of my first home, will I be taxed at the same rate as if I withdrew the money for another purpose? What are the rules regarding "first time home buyers" and the civlian TSP?
Thanks!

FundSurfer
10-07-2006, 09:35 PM
Have you considered giving yourself a loan from your TSP? I'm not exactly sure how that would work for your situation but it seems like it could lessen the tax blow by spreading out your withdrawl over several years. I'm just giving some ideas as I'm no near retirement and haven't researched this idea.