New Rule Would Change the Re-Amortized Debt Formula for Thrift Savings Plan Loans

New Rule Would Change the Re-Amortized Debt Formula for Thrift Savings Plan Loans

A proposed rule from the Federal Retirement Thrift Investment Board could recalculate how federal employees repay accrued interest on loans from the government’s 401(k)-style retirement plan.

A new rule proposed on April 18 could change how Thrift Savings Plan-based loans are repaid under re-amortization terms.

The Federal Retirement Thrift Investment Board, which governs the federal government’s 401(k)-style retirement plan, detailed its plan to amend a loan re-amortization rule in the Federal Register. The board proposed a combination of accrued interest with the outstanding principal when re-amortizing a loan made out of the TSP. Follow link to read more from Government Executive. https://www.govexec.com/pay-benefits/2025/04/new-rule-would-change-reamortized-debt-formula-thrift-savings-plan-loans/404746/