Q. I read a question regarding TSP. You stated that if the TSP is used for purchasing a home, the money would be taxed. In other words, they are telling you how to spend your hard-earned money. I would like to think that I could spend my money any way I desired. Please tell me if there are restrictions on how to spend my money?
A. All money that is withdrawn from the the TSP is taxed as ordinary income.
1 Comment
Why not suggest a residential TSP loan??