Q. I will turn 70 in July 2014. Is 2015 the first year I will be required to receive the required minimum distribution? Who decides the date and month of annual distributions? A. You must complete your first RMD by April 1 of the year following the calendar year in which you reach age 70½. You may take the distribution however and whenever you like, as long as the required minimum amount has been withdrawn by the deadline for each year.
Browsing: Required Minimum Distribution
Q. Upon turning 70½ years of age, one must begin taking required minimum distributions. The only exception is that the first distribution can be delayed until the following year. This serves to reduce taxable income in the 70.5 year, but increases taxable income since there would be two years’ worth of distributions in the next year. Can a part of the RMD be taken in the 70.5 year, with the remainder being carried over to the next year? A. Yes.
Q. I want to take the remaining required minimum distribution for 2013 in one lump sum (I have received monthly payments through May). Can this be done online at the TSP.gov website? If so, where exactly? If not, how do I do this? A. You can do it via the website by clicking the My Account link or using form TSP-77, which is available at https://www.tsp.gov/PDF/formspubs/tsp-77.pdf.
Q. I have been taking monthly withdrawals from my Thrift Savings Plan account for several years. I will turn 70½ this year. Do my prior withdrawals affect the amount of the required withdrawals? A. The required withdrawal each year is based entirely on the closing balance in your account at the end of the calendar year preceding the year for the withdrawal.
Q. I have an inherited IRA with $50,000 (from my 75-year-old father). It is in a managed asset account. I have to take a required minimum distribution on a yearly basis. Can I transfer this money into my Thrift Savings Plan account and request RMD on yearly basis? A. No.
If you own a Thrift Savings Plan account and plan to use it to fund your standard of living in retirement, you are a pension fund manager. As a pension fund manager, you are responsible for the standard of living your TSP account produces. This standard of living will depend heavily on the decisions you make in the course of managing your account. It is critical to recognize that a single stumble along the way — one bad outcome from one bad or overlooked decision — can cost you dearly later in life. The margin for error is razor thin,…
Q. I have a 401(k), several CD IRAs and several mutual fund IRAs. I will turn 70 the end of November. Do I have to withdraw a minimum amount from each account, or can I withdraw the required minimum amount from one of the accounts as long as it totals the amount I must withdraw next year?
Q. If I leave my money in the Thrift Savings Plan, will I be penalized? Is it correct to say that I have the option of rolling it into an IRA or withdrawing all of it or part of it? A. You may leave your money in the TSP until the IRS minimum distribution requirements begin. The TSP does not penalize you for leaving your money there.
Q. I am retired CSRS. I was born Nov. 15, 1942. Therefore, I’ll be 70½ on May 15. 1. When will I have to start taking payments from my Thrift Savings Plan account? 2. Can I wait until January to March 2014 before I get my first payment? 3. What is the minimum I will have to take? 4. I do not want a total lump-sum payment. 5. Do I have to take a monthly payment, or can I get my minimum payment once a year? 6. What form do I need to submit to get minimal payments each year? 7. Can…
Q. I have to withdraw my Thrift Savings Plan because of my age (70½). I am indecisive as to: 1. Withdraw all to a saving account 2. Get a partial withdrawal for 120 months, or 3. Withdraw part of it and gradually withdraw the rest over a 10-year time span. My considerations are: 1. No taxes, as I understand it, over a period greater than 10 years on a gradual withdrawal 2. Putting me into a higher tax bracket. What advice or comments can you give me? A. Unless you can come up with a good reason – that is,…