topic Thrift Savings Plan Taxed loan in Deductions & credits

Thrift Savings Plan Taxed loan

Ferguson2024 — Tue, 10 Feb 2026 10:49:13 GMT

Can the repayments be claimed as I was already taxed for a tsp general-purpose loan?

Re: Thrift Savings Plan Taxed loan

SharonD007 — Sun, 25 Feb 2024 03:35:49 GMT

No, you can't claim repayments on a loan you took from your retirement plan (Thrift Savings Plan) on your tax return.

When you take a loan out from a 401(k) plan, the money you take out is tax-exempt as long as you pay it back on time. As you make payments, the interest you pay is paid to your 401(k) account.

Refer to the TurboTax article What happens if I have a 401(k) loan but later lose or quit my job? if you stop working at your job.

Re: Thrift Savings Plan Taxed loan

Ferguson2024 — Sun, 25 Feb 2024 03:45:01 GMT

it was taxed when they gave it to me it came out of the loan

Re: Thrift Savings Plan Taxed loan

SteamTrain — Sun, 25 Feb 2024 12:15:13 GMT

You may need to call in and discuss that with the Administrator (or phone agent) for those 401k funds .

If you didn't set up a separate repayment plan, then it wasn't set up as an actual loan.

A loan isn't taxed (unless you fail to repay). A distribution almost always has tax withholding.