TSP after I die


Q: My concern is what happens to my TSP account upon my death (when in retirement);  while I understand it will go to my listed TSP beneficiaries; will they have an option to take the money over time so as to not be burdened with immediate taxes. Similar to the way on can take an inherited IRA?

A: Generally, a spouse beneficiary with who is entitled to a share of your account worth at least $200 will receive that share in a Beneficiary TSP account, which they may continue to manage as their own. Any other beneficiary will receive a check and tax will be due on the distribution. You’ll find more details at www.tsp.gov in the section for beneficiary participants. You should also consult a qualified estate planning attorney to work out the details of your estate plan before it’s too late.


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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