TSP withdrawal


Q. 1 will turn 70 in July 2012 and would like to know when I must begin
withdrawing from my TSP and is there a certain amount that I must withdraw?

A. Since you will not be 70½ until 2013, your first withdrawal will be due by April 1, 2014, the year after the year in which you reach age 70½. This withdrawal will be for 2013, and your subsequent withdrawals will be due by Dec. 31 each year beginning with 2014. The minimum amount due each year is a moving target based on your life expectancy. Fortunately, the TSP will calculate the amount for you and send the payments as part of a monthly full withdrawal requested using Form TSP-70. The distributions are not required until after you have left TSP covered service.


About Author

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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