Q. I am considering taking a loan from my TSP to buy a car. I understand that if I retire before repaying the loan, the remaining amount will be declared a taxable distribution. I am old enough that when I retire I will have to take a minimum required distribution from my TSP each year. If the loan balance is declared a taxable distribution, will that amount count toward my minimum taxable distribution for that year?
A. Yes. The declared distribution counts as a distribution for the calendar year in which it is declared.