TSP Home Loans

[walcath]

A question for anyone...
I retired from overseas with an outstanding TSP home loan and, of course, received a taxable distribution for the amount unpaid.
Does anyone know of any legitimate tax breaks to minimize the tax due on this money?

 

[domingo3]

There's one thing that you can do, but with a couple of big IFs.

If it has been less than 60 days since you got the distribution, then you can contribute money into an IRA. It doesn't have to be the entire distribution; it can be a portion of it. Any amount you do reduce your income by that amount. You have to have money available to put into the IRA.

If you can't do that, then you're stuck paying taxes on it as far as I know.

 

[Scout333]

A question for anyone...
I retired from overseas with an outstanding TSP home loan and, of course, received a taxable distribution for the amount unpaid.
Does anyone know of any legitimate tax breaks to minimize the tax due on this money?

Walcath, Don't know how long it has been since you retired and received notification of unpaid balance but I believe you have a small window of time to repay it to avoid a taxable distribution. Think it is 90 days. You might want to call the TSP number and ask. There may be additional time for overseas retirees. Military? Good luck!