Q. When must I begin making my required minimum distribution? Since I turn 70-1/2 late in the month of April, I’m not sure about the requirement. A. If you’re separated from federal service, your first distribution, for tax year 2015, will be due by April 1, 2016. If you’re still working, then it won’t be due until after you retire.
Browsing: Required Minimum Distribution
Q. Is a TSP age-based withdrawal, taken while an employee is still working, credited toward the required minimum distribution when the employee later retires? A. Only if it is taken during the year subject to the RMD.
Q. So I’m retiring early, age 55, on the early out offer effective on July 31, 2014. I will begin monthly withdrawals from the Thrift plan at the rate of 20K per year as soon as I can, hopefully beginning in September 2014. I will receive my pension payment of 25K, and beginning in November 2014, I qualify to begin receiving the supplemental payment of slightly over 10K because I turn 56 on October 30, 2014. I like the idea of eventually converting to an immediate fixed annuity at some point after I’ve managed my own distributions for a lengthy…
Q. I am 70½ and separated from federal service since 2008. I need to make a withdrawal election (my Thrift Savings Plan has $180,000). I was told I have three options: withdraw the account as a single payment, monthly payments or an annuity (or a combination). Assuming I do not need the money right now, what is the best option to maximize the interest I am getting and paying taxes on what I’ll be withdrawing? A. If you don’t need the money, I suggest that you begin fixed monthly distributions in an amount that will satisfy or nearly satisfy your…
Q. Is it possible to pay all taxes on the Thrift Savings Plan at retirement and then still keep money in a Roth TSP? If not, is there any way to convert money in TSP before I turn 70 to avoid having to take minimum distribution? I do not want to pay taxes again on money that I may not need if it is paid out as a minimum distribution. A. You may not convert a traditional TSP balance to a Roth TSP balance. You should also reconsider the logic of what you’re trying to do, which is electing to…
Q. Could you clarify for me the following: I wish to withdraw funds from my Thrift Savings Plan account (by submitting Form TSP 70, as I am told). To get monthly payments, in section IV, I fill No. 23c: 100% for monthly payments, fixed amount (greater than my RMD). Suppose two years from now, I want to withdraw the remainder of my TSP funds in one lump sum. Am I allowed to do so? How? By submitting another TSP70? A. Yes, you may terminate the monthly payments and request a final distribution using Form TSP-79.
Q. I will turn 70½ after Feb. 19, and will retire from my full-time position at the end of the month. I have notified Social Security, the state retirement funds in two states where I worked, and my fund in a private approved pension fund with accounts from two other universities of my intention to retire at the end of February and to start receiving distributions in March 2014. Is there anything else that I need to do to avoid being hit with that horrid 50 percent penalty? I received an unsavory email from the Wisconsin Employee Trust Fund scolding…
Q. My first required minimum distribution at age 70½ was made in August, when I took the total RMD required for both my IRA and Thrift Savings Plan accounts from one IRA fund. However, I have just received my notice from TSP stating I must make a withdrawal by April 1 from the TSP account to avoid dire circumstances. I am not clear on whether what I have already done meets my obligations for the first withdrawal, based on two of your answers concerning this matter. Q: “Also, I thought if I have other IRAs, I could take the RMD…
Q. I know that after reaching age of 70½, I have to withdraw a minimum requirement from my Thrift Savings Plan account. Will I be able to keep the rest of my TSP money in that account? A. Yes.
Q. I own both a Thrift Savings Plan account and several non-TSP IRAs with other institutions and am approaching the age at which I must begin to withdraw the required minimum distribution from both the TSP and the non-TSP IRAs. I am withdrawing enough money from the TSP to cover the required distribution from all of my accounts combined. Must I withdraw any additional monies from my non-TSP IRAs to comply with the tax laws? The answer may depend upon whether the TSP is considered a “traditional IRA” for tax purposes. I can’t find any information on this point. A.…