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Individual TSP Funds. 1  G Fund - Government Securities fund. The G Fund (think G for government securities) is invested in very short-term U.S. Treasury securities (bonds) guaranteed by the federal government. 2  F Fund - Fixed Income Index fund.
In addition, you are double-taxed on the interest â 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.