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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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swoc$op  
#1 Posted : Monday, December 13, 2021 7:26:45 AM(UTC)

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Will TSP automatically send me the RMD in December if I don't request it?
TheRealOrange  
#2 Posted : Monday, December 13, 2021 8:38:10 AM(UTC)
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Originally Posted by: swoc$op Go to Quoted Post
Will TSP automatically send me the RMD in December if I don't request it?

How/When the RMD will be made by TSP depends on your circumstances. Here is the general information from TSP:

RMD requirements

* If you have left federal service and do not begin withdrawing from your TSP account balance in the year you turn 72*, we are required to make the required distribution to you by April 1 of the following year.

* If you separate from federal service after age 72, your account will immediately be subject to the IRS minimum distribution requirements.

* If you’re already receiving a series of monthly payments from your TSP account when you turn 72, your monthly payments will be used to satisfy the IRS minimum distributions requirement. If the total amount of your monthly payments does not satisfy the requirement, we will issue a supplemental payment for the remaining amount in December.

* If you’re a beneficiary participant, your deadline for beginning to receive required minimum distributions depends on whether your spouse died before or after his or her required beginning date.
MovinUp  
#3 Posted : Monday, December 13, 2021 9:09:29 PM(UTC)
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Considering your consequences if you don't take your RMD, I would not count on any action on their part.
TheRealOrange  
#4 Posted : Tuesday, December 14, 2021 5:34:25 AM(UTC)
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Originally Posted by: MovinUp Go to Quoted Post
Considering your consequences if you don't take your RMD, I would not count on any action on their part.

True, but the TSP is supposed to automatically make the RMD payment if a participant doesn't make the withdrawal or does but falls short of the amount required. A good article from August 2021 on the topic by Ed Zurndorfer, Certified Financial Planner, who used to respond to questions like this on this site, is linked below.

A separated TSP participant can fully or partly satisfy his or her annual TSP RMD with any type of withdrawal the separated participant chooses. If the separated participant does not make any withdrawals or if the amount of the withdrawals fall [sic] short of the required amount, the TSP will automatically send the separated TSP participant the amount that is required sometime in early December.

https://www.myfederalret...t.com/tsp-rmd-separated/

This is from the TSP tax publication (Important Tax Information About Your TSP Withdrawal and Required Minimum Distributions):

3. How do I ensure that I receive the required minimum distribution?

You will fully or partly satisfy your RMD with any withdrawals you choose to make. If you don’t make any withdrawals or if your withdrawals fall short of the required amount, we will automatically send you the amount that's still required. This section explains the different rules that apply in your first distribution calendar year and in your second and subsequent distribution calendar years. It also shows how different withdrawal methods may have different effects on your RMD. See the TSP booklet Withdrawing from Your TSP Account for Separated and Beneficiary Participants for more information about these methods.

https://www.tsp.gov/publications/tsp-775.pdf
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