TSP minimum distribution

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Q. Just how is the minimum distribution calculated for the TSP? I understand calculations based on life expectancy tables, but not how the minimum amount is calculated. I am assuming that it would be less than that based on life expectancy. I am FERS and plan to retire in June.

A. In general, the Required Minimum Distribution amount is calculated by dividing the prior year’s ending account value by the appropriate life expectancy factor. There are specific rules that may apply to certain situations, however. See IRS Publication 590 for instructions for calculating the RMD.

 

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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.

1 Comment

  1. In spite of what Pub 590 says, TSP currently does not allow the use of the “Joint Life and Last Survivor Expectancy Table” by a TSP participant under ANY circumstances. Participants are only allowed to use the “Uniform Lifetime Table” even if they have a spouse more than 10 years younger than they are. This appears to be an unexplained deviation from Pub 590.

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