Q. I am retiring from federal service after 27 years. I am going to roll my TSP account over into an IRA account. I will have an outstanding TSP loan balance of far less than the value of my account, unless I pay it off. If I decide not to pay it off and take a partial distribution next year for tax purposes, will that delay the processing of my rollover at retirement?
A. I can’t say for sure, since I don’t process those transactions. It should not delay the rollover, however, since the outstanding loan balance will be declared a taxable distribution in association with the rollover.