Q. I retired early from the post office last year. At the time, I had a two loans out on my Thrift Savings Plan account. Now the time has come to pay the piper and the tax bill is enormous. I just turned 56 in January. Is there any way to lessen the blow or offset any of the taxes and penalties from the unpaid loans I took out before retirement? Or at least something I can do, other than pay the full amount of early withdrawal and regular taxes?
A. Assuming that it’s been more than 60 days since the taxable distribution was declared, I don’t know of anything. Maybe a payment plan? I suggest that you consult a CPA.
