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fisherdude  
#1 Posted : Thursday, August 30, 2018 10:26:30 AM(UTC)

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I will be 70 next month. I will need to make a decision on what I will withdraw from my TSP account on a monthly basis. Say I decide on an amount but several months later I change my mind and want to change that amount. Is it possible?

Edited by user Sunday, September 02, 2018 2:20:46 PM(UTC)  | Reason: Not specified

NeutronBoy  
#2 Posted : Sunday, September 02, 2018 10:14:59 AM(UTC)
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It all depends ... under the current rules, you can change your TSP withdrawals during an Open Season in November. However, the rules will be changed later next year to allow multiple changes to your withdrawal strategies - both timing and amounts.


Minimum withdrawals become mandatory at age 70 1/2, it's a bit complex, so read about it here:
https://www.tsp.gov/PDF/formspubs/tsp-775.pdf


Read about the upcoming changes here:
https://www.tsp.gov/PDF/formspubs/tspfs10.pdf

Edited by user Sunday, September 02, 2018 2:40:35 PM(UTC)  | Reason: Not specified

thanks 1 user thanked NeutronBoy for this useful post.
fisherdude on 9/2/2018(UTC)
fisherdude  
#3 Posted : Sunday, September 02, 2018 2:23:56 PM(UTC)

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Isn't the first one for survivors of an annuitant? I think the TSP file I would use is a tsp-775. file
fisherdude  
#4 Posted : Sunday, September 02, 2018 2:27:00 PM(UTC)

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But the second file seems to say that I will be able to make changes to my monthly amount of withdrawal. I will assume one must withdraw the minimum amount needed to satisfy the IRS rules.
NeutronBoy  
#5 Posted : Sunday, September 02, 2018 2:41:36 PM(UTC)
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OOPS!! Right you are fisherdude. I made the correction. And you are correct - IRS will mandates the Required Minimum Distributions (RMD) to be made. Beginning sometime in 2019, you will have much more flexibility in making changes to withdrawals and timing of withdrawals from your account. TSP has not announced when the changes will be in effect, but they are coming.

One other thing to be aware of - the IRS required that you make a withdrawal by the April after you reach age 70 1/2. But let's say you reach 70 1/2 in 2018 and decide to wait until April 2019 to make a withdrawal, you will still be required to withdraw for the year after you are 70 1/2 (which is 2019). This may just change your tax bracket because you will be making 2 RMDs in 2019 (i.e. double the money).

Edited by user Sunday, September 02, 2018 2:49:07 PM(UTC)  | Reason: fumble fingers

fisherdude  
#6 Posted : Sunday, September 02, 2018 3:19:53 PM(UTC)

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Here is my situation. I will be 70 next Thursday 9/6/2018. I was told that I am to be notified by someone from the TSP ( I would venture to say) of my pending obligation to begin drawing a RMD or else so to speak no later than 4/1/2019.

So Let us say I do so. My RMD is my annuity total divided by 27.4. Then for monthly payments we then divide that total by 12. I get that.

It makes no sense to not allow an annuitant to increase the amount they want to draw down each month, unless they did not want people making changes every other month or so. That might be a pain.

Now one must wait until Oct 1 to Dec 15 of each year to do so. That has changed but not implemented according to the second file you attached the tspfs10 file.

So when will they implement this change, and how will one know of the change?

BTW thanks for the information!
NeutronBoy  
#7 Posted : Tuesday, September 04, 2018 4:36:55 PM(UTC)
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Good question on how to maintain the correct rate of withdrawal from one year to another. I imagine that the open season being so late in the year would enable you to plan for the correct withdrawal rates.

I am sure that when the TSP changes go into effect, there will be letters and emails and all kinds of notices sent out.
gperz  
#8 Posted : Tuesday, December 04, 2018 9:42:29 AM(UTC)
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Related question. In October I sent in a request via TSP-73 to make a reduction change in the amount of my monthly withdrawal starting in 2019. I haven't received any confirmation notice that it was received and/or processed. Perhaps that may be routine in that they don't have staffing to reply to all changes? I guess all I can do now is wait. But I was sort of expecting a confirmation. Oh well.
old fed  
#9 Posted : Tuesday, December 04, 2018 11:01:41 AM(UTC)
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Originally Posted by: NeutronBoy Go to Quoted Post
OOPS!! Right you are fisherdude. I made the correction. And you are correct - IRS will mandates the Required Minimum Distributions (RMD) to be made. Beginning sometime in 2019, you will have much more flexibility in making changes to withdrawals and timing of withdrawals from your account. TSP has not announced when the changes will be in effect, but they are coming.

One other thing to be aware of - the IRS required that you make a withdrawal by the April after you reach age 70 1/2. But let's say you reach 70 1/2 in 2018 and decide to wait until April 2019 to make a withdrawal, you will still be required to withdraw for the year after you are 70 1/2 (which is 2019). This may just change your tax bracket because you will be making 2 RMDs in 2019 (i.e. double the money).


changes to be implemented by mid-september. at least that seems to be the plan for now.

https://www.govexec.com/...thdrawal-options/153077/
thanks 1 user thanked old fed for this useful post.
Raoul on 12/4/2018(UTC)
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