May I borrow from my TSA?

Yes, you can borrow the greater of $10,000 or 50 percent of your TSA without tax consequences if your TSA plan agreement has provisions for borrowing. Under IRS guidelines, a loan must be paid in quarterly installments within a 5-year period. However, if the funds are being borrowed to purchase a primary residence, repayment of the loan may be made over a period as long as 30 years. Policy loans are not includable in your taxable income as long as the loans fall within the IRS guidelines. This ability to borrow accumulations in your TSA allows for somewhat more flexibility in accessing your money than would be available in regard to the accumulations in an IRA.