Guidance

[sticky2j]

Stupidly I have defaulted on my TSP loan. I know I will have to pay the taxes on this loan next year. How can I predict the amount I will owe in taxes?

 

[Frixxxx]

Missed Payments

You are responsible for ensuring that the correct loan payments are submitted on time regardless of whether your agency or service missed your loan payment.

Making up Missed Payments At the end of each calendar quarter, the TSP identifies all loans with missed payments. If you have missed more than 2½ payments, the TSP will send a notice indicating that you have until the end of the following calendar quarter to pay the missed amount. You must pay the missed amount directly to the TSP using your own personal funds to avoid a taxable distribution. Your payroll office cannot make up missed payments from your pay.

Exceptions for Missed Payments Certain exceptions for missed payments are granted if you are in nonpay status. For more information, visit Nonpay Status.

If you missed last quarter, you should have until the end of this quarter to catch up.