Changes

Unless an employee or service member chooses a different fund upon entering Federal or military service, civilian employees will automatically have their contributions established in an L fund based on an expected retirement date of 63, while members of the uniformed services will automatically have their contributions established in the G Fund.  Employees may move their existing and future contributions (each are handled separately) between funds.  In any calendar month the contributions may be moved as twice to whatever fund(s) are desired, but after that all movements are into the G Fund only.

Unless an employee or service member chooses a different fund upon entering Federal or military service, civilian employees will automatically have their contributions established in an L fund based on an expected retirement date of 63, while members of the uniformed services will automatically have their contributions established in the G Fund.  Employees may move their existing and future contributions (each are handled separately) between funds.  In any calendar month the contributions may be moved as twice to whatever fund(s) are desired, but after that all movements are into the G Fund only.

During employment an employee may take out a loan against his/her balance.  Two types of loans are available: a general purpose loan and a primary residence loan; an employee may have only one of each type outstanding.  The minimum loan is $1,000 and the maximum is $50,000 (a $50 processing fee applies and is included in the loan amount), with terms being five years for the general purpose loan and 15 years for the primary residence loan.  If married the spouse must consent.  Interest is charged at the current G Fund rate of return, and payments are made via mandatory payroll deduction (though additional payments outside of this process may be made).  Once a loan is paid off the employee must wait 60 days until another loan of that type is taken.  If the employee separates from civil service, the loan must be repaid within 60 days or it is considered taxable income.

During employment an employee may take out a loan against his/her balance.  Two types of loans are available: a general purpose loan and a primary residence loan; an employee may have either two general purpose loans, or one of each type, outstanding.  The minimum loan is $1,000 and the maximum is $50,000 (a $50 processing fee applies and is included in the loan amount), with terms being five years for the general purpose loan and 15 years for the primary residence loan.  If married the spouse must consent.  Interest is charged at the current G Fund rate of return, and payments are made via mandatory payroll deduction (though additional payments outside of this process may be made).  Once a loan is paid off the employee must wait 60 days until another loan of that type is taken.  If the employee separates from civil service, the loan must be repaid within 60 days or it is considered taxable income.

An employee also may make withdrawals against his/her balance.  These withdrawals are permanent reductions in the balance, and are subject to tax and early withdrawal penalties if applicable:

An employee also may make withdrawals against his/her balance.  These withdrawals are permanent reductions in the balance, and are subject to tax and early withdrawal penalties if applicable: