Q. I am 68 years old and do not want to touch my TSP account until I have to at 70½ years old. What percentage will I be required to take when that occurs? I currently have my money in the L Income Fund. Which L Fund do you recommend for me at this point and time?
A. Your Required Minimum Distribution (RMB) each year will be calculated based on the previous year’s closing account balance and a factor determined from the tables at the back of IRS Publication 590. The RMD will vary from year to year.
I can’t possibly tell you what investment strategy will best meet your needs, since I don’t know what those needs are. If you’re not up to determining the answer yourself, or engaging someone to do it for you, then I suggest that you default to the L Fund that corresponds most closely to your life expectancy and hope for the best.
