TSP loan payments

0

Q. When money is deducted from my salary to repay a Thrift Savings Plan loan, is it deducted after it is taxed or before it is taxed? Also, is money received from a TSP loan taxed as income (assuming no payments are missed)?

A. Your loan payments are made with after-tax dollars. You loan proceeds are not taxable income if you repay the loan as due.

Share.

About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

Leave A Reply