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Nyc doe - borrowing against your TDA

 
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amother




OP
 

Post  Thu, Mar 05 2020, 7:52 am
I'm wondering if anyone who works for the DOE ever took money out of your TDA?

I want to take out about 8000 for home improvements. How do I go about taking it out? What about paying it back? What happends if I can't?

Anyone do it and have advise?
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amother




Bronze
 

Post  Thu, Mar 05 2020, 8:04 am
amother [ OP ] wrote:
I'm wondering if anyone who works for the DOE ever took money out of your TDA?

I want to take out about 8000 for home improvements. How do I go about taking it out? What about paying it back? What happends if I can't?

Anyone do it and have advise?


Is that your pension fund?
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amother




OP
 

Post  Thu, Mar 05 2020, 8:06 am
Not pension fund.
It's a tax deferred annuity, where I put a few thousand dollars into every yr.
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ellacoe




 
 
 
 

Post  Thu, Mar 05 2020, 12:06 pm
Find out what the interest payments and penalties are. I have had clients who have done it then end up regretting it and having to take out other loans to repay it.
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amother




Seashell
 

Post  Thu, Mar 05 2020, 12:14 pm
I don't work for DOE, but several years ago, I borrowed money from my work retirement plan for home construction. I didn't have to pay any fees or penalties, but possibly paid interest. The money to repay it was automatically deducted from my paycheck for the next 5 years, with the understanding that if I left the job during that time for any reason, I would immediately have to pay back the balance from my own money. B"H everything went smoothly, no regrets. But check with HR or whoever handles this at DOE to find out what options you have.
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icedcoffee




 
 
 
 

Post  Thu, Mar 05 2020, 12:18 pm
I would call TRS. They will be able to answer all of your questions.

Phone number is 1-888-869-2877
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amother




OP
 

Post  Thu, Mar 05 2020, 12:21 pm
amother [ Seashell ] wrote:
I don't work for DOE, but several years ago, I borrowed money from my work retirement plan for home construction. I didn't have to pay any fees or penalties, but possibly paid interest. The money to repay it was automatically deducted from my paycheck for the next 5 years, with the understanding that if I left the job during that time for any reason, I would immediately have to pay back the balance from my own money. B"H everything went smoothly, no regrets. But check with HR or whoever handles this at DOE to find out what options you have.


Yes this is similar to what I saw. Almost exact actually. I would be deducted 175$ dollars a month which includes the interest fee which isn't alot. However, somehow saving the 8000 seems impossible. I figure the automatic deduction will ensure it is paid back plus I wont feel it as much.
I basically want to use it to install central air. Im trying to figure out if its a worthwhile investment. I'm thinking yes....
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suzyq




 
 
 
 

Post  Thu, Mar 05 2020, 3:00 pm
amother [ Seashell ] wrote:
I don't work for DOE, but several years ago, I borrowed money from my work retirement plan for home construction. I didn't have to pay any fees or penalties, but possibly paid interest. The money to repay it was automatically deducted from my paycheck for the next 5 years, with the understanding that if I left the job during that time for any reason, I would immediately have to pay back the balance from my own money. B"H everything went smoothly, no regrets. But check with HR or whoever handles this at DOE to find out what options you have.


You do pay interest, and additionally, that money ends up being double-taxed, which is why loans from retirement plans are not a great idea. (When you pay back your loan, it is paid back with after-tax money, and when you withdraw that money when you retire, it gets taxed again.)
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