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(i) In general.--Subparagraph (A) shall
not apply to any loan unless such loan, by
its terms, is required to be repaid within 5
years.
* * * * * * *
(C) Requirement of level amortization.--Ex-
cept as provided in regulations, this paragraph
shall not apply to any loan unless substantially
level amortization of such loan (with payments not
less frequently than quarterly) is required over
the term of the loan.
The record does not disclose when petitioner borrowed the
money from petitioner’s TSP retirement account that was evidenced
by petitioner’s loans. Nor does the record disclose the respec-
tive terms of those loans or the terms of the Federal Thrift
Savings Plan in which petitioner participated while he was an
employee of the Postal Service. The Court is unable to determine
from the instant record whether each of petitioner’s loans
qualified for the exception under section 72(p)(2). Nonetheless,
it appears that each of those loans did so qualify. In this
connection, the respective September 23, 2002 letters pertaining
to petitioner’s $10,477.89 loan and petitioner’s $15,462.60 loan
that the Federal Thrift Savings Plan sent to petitioner stated in
pertinent part:
You were sent a notice dated 09/04/02, informing you
that, because you separated after your Thrift Savings
Plan (TSP) loan was issued, you must repay your loan in
full by 12/03/02, or a taxable distribution would be
declared. Because you forfeited your right to repay
the loan in full, effective 09/16/02, a taxable distri-
bution * * * has been declared in connection with the
unpaid principal and unpaid interest to 09/16/02 * * *.
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