Most qualified retirement plans, including pensions, allow employees to borrow against them and then repay the plan with interest, according to Investopedia. One benefit of taking a loan against a retirement account over other types of loans is that interest is repaid directly to the account.Continue Reading
A negative aspect of borrowing against a pension plan is that assets removed from the account are not available for tax-deferred financial growth on the earnings, Investopedia notes. Some retirement plans require that employees stop contributions for a time period after receiving a loan through the plan. Although federal law allows qualified plans to offer loans, plans are not required to offer them. Some plans include restrictions on loans, such as offering them only in hardship situations. Such plans may require that a borrower has no other alternative for securing a loan.Learn more about Financial Planning
Roth TSP stands for Roth Thrift Savings Plan, which is a retirement savings plan created for current or retired employees of the federal civil service, including those in the military, explains Investopedia. Roth TSPs require tax payments up front, whereas traditional TSPs defer tax until withdrawal, states the TSP website.Full Answer >
Retirement plan sponsors are companies or employers who set up a retirement plan for employees, according to Investopedia. Retirement sponsors determine an employee's contribution payment and where to invest the money. They may also provide contribution payment in the form of cash or stock.Full Answer >
A thrift savings plan, or TSP, is a retirement savings plan established in 1986 for federal civil service employees, according to Investopedia. The Federal Employee's Retirement System Act of 1986 established this defined-contribution plan to allow federal employees the same sort of savings potential that private sector employees have through 401(k) plans.Full Answer >
The NYCERS Tier 4 plan includes provisions relating to retirement plans, programs, and other benefits offered to New York City employees who become members of the system on and after July 27, 1976. Some of the benefits that members enjoy are access to loans and insurance services. A person's Tier is generally determined by the date of joining NYCERS, notes NYCERS.org.