If you’re looking ahead at how to pay for your child’s college education, you might get some help from your Thrift Savings Plan account.
“The first thing all the retirement people tell you is, You save in a retirement plan not to borrow from it but to have it in retirement. And that is true,” said Tom Trabucco, director of external affairs at the Federal Retirement Thrift Investment Board, which oversees your TSP.
Trabucco added, however, that the TSP is available if you need to take out loans. When he started investing in the TSP 25 years ago, Trabucco said he knew he would have college expenses for his children so he invested in his TSP at the maximum percent.