TSP funds at age 70½


Q. I have a TSP plan from when I retired from federal service at age 49 in April 1994. I left my TSP funds in the program. I turned 70 on Dec. 22, 2015. Now that I am older than 70, what are my options? Is it mandatory for me to begin taking this money out? If so, what are the deadlines involved?

A. You are required to begin taking annual distributions from your account, beginning with the calendar year in which you reach age 70½. The first distribution must be completed by April 1 of the year following the first year. The distributions for the second and subsequent years must be completed by the end of each year. If you will file form TSP-70, requesting monthly payments from 100 percent of your balance, well before the end of the first distribution year, the TSP will make sure that the requirements are met each year.


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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