Using rollover to repay TSP loan


Q. I have a Thrift Savings Plan loan that I would like to pay off and was wondering if there was a way to do it by transferring funds from my personal IRA.

First, would a direct transfer work at all? Is there any way to designate that transfer to count against the loan?

Second, since I should pay back the loan with post-tax funds, if I do a rollover from a Roth IRA, can I then put it in the TSP as a loan payment?

Because I’m under 59½, will I get the early withdrawal penalty, even though I am rolling it into the TSP?

A. You may not use a rollover, from any account, to repay a TSP loan.


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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 and view his blog at

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