Rolling savings withdrawals


Q: I am 69 and a federal retiree who will need to begin annual withdrawals from my Thrift Savings Account next year when I turn 70 1/2. My financial advisor told me that I could put the minimum annual withdrawals from my TSA into a regular IRA and avoid paying the tax until I take the money out of my IRA. Is this correct information? If this is not correct, is there any other way to avoid paying the tax on withdrawals from my TSA at the time of withdrawal?

A: Not correct. Maybe you should find another financial advisor. The purpose of the RMD is to force you to begin withdrawing your money and paying taxes. There is no way around it, but I wouldn’t worry about it. The value of the tax deferral is not really that great.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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