TSP loan and taxable distributions

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Q. I plan to retire with a TSP loan that I will not pay and will be a taxable distribution. Will this count against my FERS supplement earnings test? Same question for TSP withdrawals.

A. Distributions from your TSP account will not count as earned income in computing any offset against your supplement or Social Security income.

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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.

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