Q. Can I save on taxes by reinvesting my complete withdrawal in paying off my mortgage?

A. No. In fact, it will probably be pretty painful from a tax perspective. You’ll owe taxes on the TSP withdrawal as ordinary income, and you’ll lose your mortgage interest deduction going forward.


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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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