Browsing: RMD

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…

Q. I retired in 2018, on Dec. 31, off the books with a buy out. I am 73 and have already been taking the required minimum distributions from a couple of other IRAs. I know I will be required to set up distributions or something with the TSP in and for 2019. Because I retired in 2018 and because I am 73, do I need to take a TSP distribution for the 2018 year before a point in April? And if yes, will that need to be reported as income for 2018 or income for 2019?

Q. I will turn 70 on Oct. 7,2019. I will be 70 1/2 on April 7, 2020. Thus, I will not have turned 70 1/2 by April 1, 2020. Will I be able to delay withdrawal from my TSP from January 2021 till 2022, since I will not have turned 70 1/2 by April 1, 2020?

Q. I am in the FERS retirement plan with 30-plus years of service and a plan to retire at age 63 with 42 years of service. I have most of my TSP money in the traditional TSP, but have recently began putting all of my contributions and catch up contributions into ROTH TSP only. I would like to avoid required minimum distributions on my ROTH TSP funds when I retire by transferring this money out of the TSP system into a brokerage account. Is this possible?

Q. I attained age 70 ½ this year. If I convert my TSP balance to an annuity before the end of this year, does that satisfy the required minimum distribution, or must I take the RMD this year and use the annuity to satisfy the RMD for future years?

Q. Required minimum distribution requirements will put me close to the Medicare cut off, so I need to reduce my TSP balance by converting current TSP money, by changing contributions to go into a Roth TSP or by selling mutual fund investments that are causing taxable gains every year. I plan to retire Jan. 3, 2020. I am already 70.5 years. Would one of these options be better than another or is there another option that you could suggest?

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