Q: I retired from federal service on Jan. 3, 2008. With accumulated sick leave I had about 42 years of service. I was 67 years old when I retired. I had been investing in TSP on a regular basis. When I retired I left my funds in TSP. I will turn 70 on Sept. 12. Am I required to withdraw the funds when I turn 70? I have heard from a financial adviser group that former federal employees with TSP must move their funds into either a lump sum withdrawl or an annuity when they reach 70. Is this true?…
Browsing: 70 1/2
Q: I will reach age 70 ½ on March 31, 2011. I understand that I must begin withdrawal from my Thrift Savings Plan [and rounded over IRA] by January 2012. I plan to continue to work in my present position for the federal government after January 2012 up until April 2013. 1. Am I required to begin to withdraw my combined TSP/IRA in January 2012, or may I delay withdrawing these funds until I stop working in April 2013? 2. What law, directive, statue says so? 3. If I am required to begin withdrawal in January 2012 but continue working…
Q: I turned 70 years old in November 2009. I intend to continue government service for at least another three years. At what age does the Thrift Spending Plan withdrawal become mandatory if you are still employed by the federal government. A: No, it will apply once you separate from service.
Q: Will the mandatory withdrawals be automatically sent to me in the year I become 70 1/2, or do I have to do something? A: You need to request a withdrawal, of some kind, and then the Thrift Savings Plan will make sure that your distributions meet the manadatory withdrawal requirement, subject to the TSP’s withdrawal rules. Visit www.tsp.gov for the details.