Browsing: RMD

Q. I am 68 years old retired and a FERS retiree. Currently, my wife and I do not need my TSP retirement to withdrawal. We know we need to start withdrawing at age 71½ and we will probably set up a monthly payments from my TSP account (not annuity). However, if I die before 71½, can my wife still receive the monthly payments? A. Your TSP required minimum distribution will begin when you reach age 72. As long as your wife is the beneficiary of your account, she will be able to take money from it after your death.

Q. I am currently working, have both a Traditional and Roth TSP but will be subject to required minimum distribution upon retirement. The five-year Roth requirement will not be satisfied by the time I retire. I would like to transfer the entire Roth account, both qualified and nonqualified, to an outside Roth IRA before I retire to avoid paying RMD on the Roth portion. Can I do this without penalty, or am I limited to transferring the qualified portion only?  A. Rolling money over from the TSP to an IRA should be free from any penalty, if you do it…

Q. My wife has a TSP and an IRA. She starts distributions this year since she has turned 70. From what I understand, she could add the account balances from both as of Dec. 31, 2018, calculate the minimum distribution, and take the entire distribution required from one account, the TSP. She does not have to take it from both accounts, correct? A. She may not aggregate her TSP and IRA RMDs. Each must be taken from the applicable account.

Q. Some employees are in disagreement over the minimum required distributions of TSP accounts. We are discussing retirements beginning five years or more from now, so the new TSP rules would apply. Would moving the Roth TSP funds to an outside Roth IRA account avoid the need for minimum required distributions on this Roth portion of a TSP account or would those particular funds still be a part of the funds subjected to MRD?

Q. I am currently employed as a full-time career Senior Executive with 24 years of service and two years additional military service. In December 2018, I turned 70 years old; I’ll reach the 70 ½ mark in three months, in June 2019. According to the TSP document “Withdrawing Your TSP Account After Leaving Federal Service” {p 3, Limitations on Leaving your money in the TSP}, I don’t have to withdraw funds until April 1 of the year following the year I retire. However, I will be subject to the RMD because of my age. Because of the tax implications, I plan to…

Q. My spouse and I are both retired CSRS employees with TSP accounts. As a general rule, I know that if one of us dies the survivor can have the deceased member’s TSP balance transferred to their TSP account. We are each the primary beneficiary of the other’s account. How does this work once we are taking RMDs? Say one of us dies in 2020. Does the TSP take the deceased member’s account balance, deduct any RMDs still due to be paid in 2020, transfer the remaining balance to the spouse’s account and send a check for the remaining RMDs…

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