It is unclear to me when the TSP would declare the distribution. 1) when the loan was taken out; 2) when the declaration to not repay the loan and/or when you leave federal service; OR 3) when you respond to the notice from the TSP. IMO, I'd call TSP for clarification.
You MAY consider a distribution from TSP on Jan XX, 2021 which would pay off your loan. This way you would not have a taxible even and you would pay off the loan/clear the books.
C
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You MAY consider a distribution from TSP on Jan XX, 2021 which would pay off your loan. This way you would not have a taxible even and you would pay off the loan/clear the books.
C
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