Q. I’m a retired worker over 70 1/2. Are required minimum withdrawals required for the Roth TSP portion after the new rules go into effect or only for the Traditional amount of the TSP? If only for the traditional part, then the payment can come from either the Traditional or Roth part or both?
Browsing: Roth TSP
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’m 55 and a civilian employee. I’m retired Air Force, with a bit in my military TSP and a growing amount in my civilian TSP. I’ve just started converting all of my future TSP contributions to go to Roth, for one main reason: I plan to retire at age 62, and we’re going to take a lump-sum distribution of my TSP to purchase a house (won’t be eligible for a mortgage). The TSP balance at the time will be about $400,000 or so (hopefully closer to $500,000). I estimate that roughly 40-50 percent of it will be Traditional, and the rest Roth.…
Q. A co-worker inadvertently put $4,000 into each of their Roth and Traditional IRA TSP accounts this year (they misunderstood the IRA limit laws). What is the best, simplest, and/or most efficient, method for them to rectify this situation with TSP?
Q. I retired before the Roth TSP program was put into place. Can I now convert my TSP account into a Roth TSP account? If not now, how about after changes to withdrawals from TSP are put into effect this year?
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. My wife and I contribute 18 percent to TSP (Roth) but also have five outside funds (1 mutual fund, 2 Roth IRA’s, 2 traditional IRA’s) that we no longer contribute to. I am retiring soon; however, my wife will work another three years. Would you recommend rolling them into our TSP (L2030)?
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?