Q. I understand that I can take a TSP loan just prior to retirement, not pay it and have it become a taxable distribution after 90 days. If the 90 days fall after the first of the year, will the tax be on the new year income or at the time of the loan? I’m a rehired annuitant, if that matters.
Browsing: TSP loan
Q. My question is about having a TSP loan at time of retirement. I understand that if you don’t pay in full within 90 days, it is dispersed as income and subject to taxes and penalties. When it is dispersed, does it count as one of your allowable withdrawals?
Q. If I was to take a normal FERS retirement on Dec. 31, 2017, would the money I receive for unused annual leave be income for 2017 or 2018? Also if I have an outstanding TSP loan, would the unpaid balance be reported as taxable income for 2017 or 2018?
Q. I’m currently paying back a TSP loan that was taken out over three years ago. Can I request another loan during the payback, or will I have to wait until the first loan is repaid?
Q. I am retiring at the end of January 2016 with 32 years in the work force. I’m turning 55 in February 2016. Can I take a TSP loan out in January 2016, not pay it back, but pay the taxes? Does this still conserve my partial withdrawal option down the road? I was told I would have to take a partial withdrawal in the year I turn 55 to avoid the penalty, but if I do that, I eliminate the option later, and the amount I need would bump into a higher tax bracket. I’d ultimately like to take…
Q. I am planning to retire within months of hitting 20 years in the government, which will be in September 2016. I will be 57 years old at that time. I will wait until I’m 60 to take my annuity, so I need to fund my existence out of savings for two years or so. My husband currently collects a military retirement and is a federal employee, too. He will quit when I do and will have about eight or nine years in the government. He will also wait so that his payments aren’t reduced. Our only income for the “gap” will…