TSP loan pay back


Q: I am about to retire. I still have a balance due on a loan from my TSP. Can I take the balance due as taxable distribution? I have already taken a one-time distribution after I turned 60. Or, do I have to pay it off before I can roll it into an IRA?

A: Your loan balance will be automatically declared a taxable distribution if you fail to repay it after you retire.


About Author

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.

Leave A Reply