TSP beneficiary account


Q. I am the account holder of my late husband’s TSP account. I’m receiving required minimum distributions due to age. My adult daughter is disabled. What is the best tax-efficient way to pass the TSP funds to her at my death? I would like for her to receive a yearly amount of $5,000 to $6,000 since that is my RMD now.

A: You should consult an estate planning attorney and a CPA to work out the best strategy for your situation. Tax-wise, every dollar that comes out of a TSP will be taxed as ordinary income. The question to consider is when it will come out and whose tax return it will affect.


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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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