Q. Can I pay off a Thrift Savings Plan loan with a transfer or rollover from one of my traditional IRA accounts without tax implications? For example, I take a $50,000 loan from my TSP account and submit the paperwork to my IRA financial institution to transfer $50,000 from my IRA to my TSP account — Can that transfer be done to satisfy the $50,000 TSP loan?
A. No. The loan must be repaid with after-tax money. You may withdraw the money from the IRA and then use the proceeds to repay the loan, however.
Paying off a TSP loan
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