70 1/2 rule and required minimum distribution


Q. I attended a seminar given by MetLife Financial people about Roth TSP, IRAs, etc., and was told that even if I am working at 70½ and not retired that I still have to make a withdrawal of my TSP percentage. However, in the booklet “Withdrawing Your TSP Account” on Page 3 under withdrawal deadlines, it states in the second sentence:  “If you are still a Federal employee employed at 70½, your required withdrawal must be by April 1 of the year following the year you separate.”

I told the lady what our TSP booklet said, but she said it doesn’t matter what our book says; that it is the IRS that says we have to start withdrawal at 70½. I am 68 now and may work past 70½ if my health holds out, and I am asking so that I know who is correct: the TSP book, or the MetLife representative?

A. Hmmm. I wonder who’s more reliable — a financial industry salesperson or the TSP? The TSP booklet is correct.


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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