Q. I understand that I can take a TSP loan just prior to retirement, not pay it and have it become a taxable distribution after 90 days. If the 90 days fall after the first of the year, will the tax be on the new year income or at the time of the loan? I’m a rehired annuitant, if that matters.
A. The taxable distribution will affect the tax return for the year in which the declaration is made.