TSP loan taxed?

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Will I pay taxes on a general purpose TSP loan? I’m considering putting a lump sum payment toward my mortgage.

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Posted by (Questions: 1, Answers: 1)
Asked on May 7, 2018 7:49 pm
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As long as your loan is repaid before you separate from federal service, you will pay no taxes on it.
If you were to separate from federal service without repaying your loan, the remaining outstanding amount of the loan would be considered a taxable distribution and you would owe taxes on it.

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Posted by (Questions: 0, Answers: 61)
Answered on May 11, 2018 2:10 pm

I believe I asked the wrong question on the taxation of a TSP loan. What I really meant to ask was if the money I borrowed would be taxable as income for the current tax year to the IRS. Basically, I do not want to pay taxes on the money when I borrow it, then again when I begin withdrawing it for retirement. Thank you.

( at May 11, 2018 4:28 pm)