Q: Given a passage and a query based on the passage, generate an unambiguous, concise and simple answer to the query from information in the passage. Note that the answer may not be present in exact form.
How many years do you have left until retirement? The more years you have until retirement, the less you will have to save each month to reach your goal. No matter your age, for every 10 years you delay starting to save for retirement, you need to save 3 times as much each month to catch up. How long will you live in retirement? Based on current estimates, a 65 year old man can expect to live approximately 18 years in retirement, and a 65 year old woman can expect to live about 20 years, but many people live longer. Planning to live well into your 90s can help you avoid outliving your income. The worksheet takes into account some factors that impact your retirement savings. Here are your basic choices: 1  Do nothing. 2  Roll your assets over into a plan offered by a new employer, if you have one. 3  Cash out your account and use the money to pay for the transition from your job to whatever is next for you. 4  Roll the account into an IRA. However, you must withdraw your entire balance (or begin receiving monthly payments from the TSP or from the TSP annuity vendor) by April 1 of the year following the year you turn 70½ (or following the year you separate, if you are already over age 70½ when you leave Federal service). When you retire from federal service or you separate from government for any other reason, loans from your TSP program come due. The loan has to be paid back within 90 days of your separation. If you don't pay it back, the TSP will treat the money that isn't repaid as a distribution and you will have to pay taxes on it. For years you have been contributing to the Thrift Savings Plan (TSP), building your retirement savings. After you leave federal service, have you considered what you should do with your TSP savings? You could choose one or any combination of these options: Leave your money in TSP. Withdraw all or some of your TSP funds. Purchase an annuity. There is one withdrawal option available with TSP that is not available with an IRA. If you leave federal service after you turn 55, but before you are 59 ½, you can withdraw money without the 10% early withdrawal penalty you would incur with an IRA. If you left federal service before you turned 55, or you transfer your TSP account to an IRA, there is a 10% penalty for most funds withdrawn prior to age 59 ½. There are number of issues to consider when deciding what to do with your TSP when you retire. Downsides of TSP Participation. 1  Less Take Home Pay. The fact is, contributing to the TSP will decrease your take-home pay. However, when you factor in agency contributions and tax benefits, the downside may not be as extreme as you think. 2  Limited Fund Choices. Contributing as much as you can to TSP retirement coverage is simply a smart financial move. Invest money in yourself and your future instead of giving the government an interest free loan in order to get back a large refund check annually after taxes. In addition, you are double-taxed on the interest – you repay the loan with after-tax dollars, and the funds are taxed again when you withdraw. However, if you want to borrow from a TSP to pay off bills, there a few things you will have to remember. Determine Eligibility To apply for a loan from your TSP account, you must be an active employee of the federal government or a uniformed military member and you must be in pay status. As a retiree, you have three options for Basic coverage: 1  75% Reduction: Monthly cost before age 65 = $.325 per $1,000 of Basic Insurance Amount (BIA); after age 65 = $0. 2  50% Reduction: Monthly cost before age 65 = $.925 per $1,000 of BIA; after age 65 = $.60 per $1,000. Query: how long after you retire do you have to pay off your tsp loan
A:
The loan has to be paid back within 90 days of your separation.