Thrift Savings Plan Loan

Forum|Forum|5 years ago
February 9, 2021
3 replies
24 views

If I take an in-service withdrawal from my thrift savings plan and use part of the withdrawal balance to repay a thrift savings plan loan can I treat the repayment as a rollover and deduct the loan repayment amount from the taxable amount of the withdrawal?

Not A Product Question

ColeenD3

Level 15

No. The withdrawal that repays the loan is not a rollover and even though you repay the loan, you will still pay tax on the withdrawal.

Ferguson2024

Level 2

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

SusanY1

Level 15

No, there is no deduction for repayments to a TSP loan. If the loan is repaid within the guidelines, there is no taxable distribution but any amount that is a taxable distribution cannot be deducted when repaid.

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