Q. When I turn 70½ and have to withdraw the money in my TSP, can I take half and put it in a Roth account and then what is left the next year have them pay me in an annuity?
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.
Q. I will be retiring from federal civil service in a few years at the age of 71, and I have 2 rollover IRAs from previous employers, plus my current TSP. When I retire, the TSP will be used for G Fund investments only, with equity investments in the IRAs. My TSP balance is not large since I began federal service as a second career. I would like to keep my 2 IRAs fully invested and use the TSP G Fund to fund all my annual RMDs each April based on the calculated total of all three of those tax deferred sources. I…
Q. What are tax and/or RMD consequences to a federal employee under FERS who is currently 70 1/2 years old and who does not plan to retire for 2-5 years, but is considering transferring a significant portion (three-quarters) of their TSP to a private insurance-company annuity? The annuity does qualify as an IRA. The federal employee does not plan to access the funds until retirement. Can the employee continue to work for federal government without taking an RMD or paying any taxes on the transfer?
Q. I have inherited my spouse’s traditional IRAs. My spouse died in May 2015 and was not subject to RMDs. Can this type of inherited IRA be transferred to my TSP account? Also, I have already taken my RMDs from my IRAs and TSP account for 2015. Do I now have to take an RMD for 2015 from the inherited IRAs, whether or not they are transferred to my TSP account?
Q. I turned 70 ½ in April. I want to withdraw the minimum required before the end of this year to avoid getting taxed more next year. How do I request this? It seems they will send it at year’s end, but I would prefer getting it sooner.