Q. I am a 73-year-old Air Force retiree and TSP account participant. When I had to comply with the IRS’ required minimum distributions requirement at 70½ years of age, I also had regular certificate of deposits of a savings nature (pretaxed) in different facilities such as savings and loans. I elected to consolidate all of my savings for ease of record-keeping and accidentally renamed my CDs as IRA accounts when they matured for a greater percentage of return. Last year I learned that I could contribute again into my TSP account even though I was not working, so I rolled over all of my CDs that were renamed IRAs, and the bank facility transferred the money to the TSP account. I recently received the TSP Form 1099R, indicating that my RMD now includes the pretaxed, renamed CDs in the RMD and I am being taxed again. I realize my mistake, however, I cannot find any IRS forms to correct my error. I thought Form 8606 would be the answer, but it only reinforces the fact that I should not have done this. Do you have any helpful information?
A. I’m not sure that there’s anything you can do about this. When you moved the funds into the TSP you certified that the money was pretax and agreed to pay tax on it when withdrawn from the TSP. I suggest that your next step should be to engage a CPA or tax attorney for advice.