Q: I have a question concerning the following paragraph from your Feb. 20 column in Federal Times: I find it disappointing that it appears that you will not be able to manage, or withdraw, money selectively between the two options. Your contribution allocation and any interfund transfers you direct will apply to both options. Any withdrawals will be taken, pro rata, from both options. You may, however, split a rollover distribution between traditional and Roth IRA accounts. Specifically, I am puzzled by the statement in the second sentence. As I understand the general concept with “tax deferred” individual retirement accounts…
Browsing: RMD
Q: I’m a Federal Employees Retirement System retiree, 70 1/2 years old, and have been receiving fixed monthly payments from my Thrift Savings Plan account to cover my living expenses since my retirement in 2006. I will begin required minimum distributions this year and would like to know if the IRS will allow the amount of my annual TSP withdrawals that exceed my TSP yearly RMD to be credited against the RMD requirements due to start this year for the standard individual retirement accounts I hold from credit unions, banks, etc. A: Your RMD must be calculated separately for each…
Q: I am 75 and still working under the Federal Employees Retirement System. I have two tax shelter plans. One of them is with my Thrift Savings Plan account, and I learned from the TSP website that I do not have to take a required minimum distribution from them until I retire. My other plan started when I worked for Georgia Tech, but is now managed by a brokerage firm. My question is: Must I take an RMD from the plan managed by the brokerage firm if I am still working? I don’t understand why I should have to take such…
Q: I am no longer employed and have reached age 70½. I received notice from the Thrift Savings Plan that I have to remove my money or start taking monthly payments, buy an annuity, or some combination of removing my money and buying an annuity. I know about the Required Minimum Distribution and was fully prepared to take that amount out. Am I not able to leave the remainder of my account intact after I take the Required Minimum Distribution? This is really a shock to me if I have to remove the money and pay taxes on it, or…