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[quote=Anonymous][quote=Anonymous]I don’t think you are taxed twice. Remember, the dollars in the loan you took were put in pre-tax. You’re just replacing those dollars. It seems like a sweet deal if you put in pretax dollars, then use those dollars in a loan and repay the loan pre-tax again. You’re basically getting double the tax savings as people who don’t take a tsp loan.[/quote

You are taxed twice for extra payments. Yes, the amortized loans are paid on schedule with pre-tax dollars, but you can send checks in in order to payoff a loan faster. Where else does the money come from a bank account then?  Bank account money is taxed dollars.  Then when you withdraw in retirement from a traditional TSP you are taxed again....meaning you are paying taxes twice for any extra monies you out in to payoff a loan.  Is the only way then to re-amortize the loan so that all pretax dollars are used to pay the loan? Paying extra out of your checking account stupid?  Can you do any tricks with a Roth TSP to avoid double taxes on extra repayments? [/quote]

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