TSP, RMD and private accounts


Q: I am 75 and still working under the Federal Employees Retirement System. I have two tax shelter plans. One of them is with my Thrift Savings Plan account, and I learned from the TSP website that I do not have to take a required minimum distribution from them until I retire. My other plan started when I worked for Georgia Tech, but is now managed by a brokerage firm. My question is: Must I take an RMD from the plan managed by the brokerage firm if I am still working? I don’t understand why I should have to take such a distribution because I could transfer the funds in this plan into my TSP account, except for some tough penalties imposed by the firm if I do so within the next few years. 

A: The fact that you are still working for the federal government will only allow you to delay the RMD from your TSP account (your active employer-sponsored retirement plan). Your other retirement accounts are subject to the usual RMD requirements.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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