Q. I will be 70½ in October 2017, and I understand I will be required to take my first required minimum distribution from my non-TSP IRAs in 2017, or wait until April 2018 and take two RMDs (the one for 2017 and the one for 2018). However, since I am still a federal employee and will remain so until I retire on Jan. 5, 2018, I believe I will not have to take a TSP RMD for 2017, so I will only need to take a single RMD from TSP in 2018. Is that correct?
Q. I am 69 (I will be 70 on July 5, so I will be 70½ on Jan. 5, 2018). I am doing my homework about taking my required minimum distribution amount from my only IRA. If I take the minimum amount next year (2018) and find that later on I need to take a bit more than the required minimum amount, will I be able to change what I elect to take at 70½? Or is that the set amount forever and can’t be changed?
Q. I will be 70½ years old in October 2017. I was planning to take a full withdrawal of my TSP account so I can set up trust funds for my grandchildren. I was told this was a bad idea, due to taxes in Virginia. What do you think? A. The alternative is to leave your TSP in place, make the trusts the beneficiaries of the account and contribute the required minimum distributions to the trusts as they are taken. This will allow you (and your grandchildren) to reap the unique benefits of the TSP for as long as you…
Q. I turned 70 on Sept. 1, 2016. I know that I will have to make a required minimum distribution (RMD) from my TSP account when I turn 70½. I made a partial withdrawal of about $15,000 in 2009. Would this count for an RMD, even though it was 7 years ago?
Q. I retired in 2014 with an annuity and fixed monthly payments, which began in mid-2014. I will be 70 in March 2017. If I do nothing, will the TSP automatically make a withdrawal and send me a check (or electronic deposit) made up of the difference between my annual withdrawal and the RMD? The difference should be about $1,000 for the year.
Q. I will be 70 1/2 on Dec. 11, and due to state income tax regulations I will be taking my 2016 and 2017 TSP withdrawals in 2017. It appears that I cannot take a yearly distribution but must take monthly payments. How will that work for 2017 when I will be taking a distribution for two years at two separate times? Is there anyone I can visit in person to help in filling out the forms?
Q. I have a military TSP and a civilian TSP. I am retired military but still working as a civilian for the federal government, and I expect that to continue after I turn 70½. I know from your previous columns that I do not have to start taking the RMD from my civilian TSP as long as I continue working for the government. Does that exemption also apply to my military TSP? If not, can I avoid having to take the RMD by rolling the military TSP over to the civilian?
Q. We are approaching the age to take required minimum distributions from our TSP accounts as well as three IRAs. The IRS allows one to take the entire calculated RMD from a single IRA (rather than each account) to satisfy the RMD. Can the TSP’s mandatory RMD be declined if one is taking the total calculated RMD from an IRA outside of TSP? If not, it might make sense to roll over our TSP accounts to IRAs to be able to use the combined withdrawal rule.