401(k) distributions at age 55

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Q. So if I follow all the rules related to my current Thrift Savings Plan account, and I begin making systematic withdrawals under the annuity factor method at age 55:

1. Can I contribute to my new employer’s 401(k) while drawing from my TSP? (I may want to take a downscaled job and subsidize the lower income with my TSP distributions.)

2. Are any Internal Revenue Service restrictions in place regarding my Roth IRA because I am taking distributions from my 401(k) at age 55?

A. Yes, you may contribute to a 401(k) while taking distributions from your TSP account, and no, there are no special rules limiting Roth IRA contributions because you are taking withdrawals from your TSP or 401(k) account. Only the usual income limits apply.

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