Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

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.

Options
Go to last post Go to first unread
dtuhome  
#1 Posted : Friday, August 30, 2019 5:29:04 AM(UTC)

Rank: Rookie

Groups: Registered
Joined: 4/12/2011(UTC)
Posts: 36

2019 is my 70 1/2 year for RMD. Called the TSP for confirmation that the TSP withdrawal changes, effective 15 Sep 19, would allow a TSP retiree partipant to select a specific account, Roth or Traditional TSP (not both) for their RMD withdrawal.
The TSP rep said this can be done when the new changes take effect.

I then asked how this is possible when the IRS rules state RMDs must be taken from Roth 401(k) and 401(k) type accounts when one reaches IRS age 70 1/2. The rep stated that the TSP is a 401(a) plan, which has different types of money (taxable, military tax exempt, Roth, etc.) funds in it, but is considered as one account. My reply was this answer clarified very little, if anything. I thought this was an important subject that definitely needed a clear explanation and should be included in the What's New, TSP FAQs. The rep said this subject is scheduled to be included in the next TSP FAQ update on 15 Sep 19.

Hoping the TSP moderator can provide further clarification on this topic.

Thank you!
roger.d  
#2 Posted : Friday, August 30, 2019 4:22:27 PM(UTC)
roger.d

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 3,039
United States
Location: Midwest

Thanks: 134 times
Was thanked: 732 time(s) in 572 post(s)
Originally Posted by: dtuhome Go to Quoted Post
2019 is my 70 1/2 year for RMD. Called the TSP for confirmation that the TSP withdrawal changes, effective 15 Sep 19, would allow a TSP retiree partipant to select a specific account, Roth or Traditional TSP (not both) for their RMD withdrawal.
The TSP rep said this can be done when the new changes take effect.

I then asked how this is possible when the IRS rules state RMDs must be taken from Roth 401(k) and 401(k) type accounts when one reaches IRS age 70 1/2. The rep stated that the TSP is a 401(a) plan, which has different types of money (taxable, military tax exempt, Roth, etc.) funds in it, but is considered as one account. My reply was this answer clarified very little, if anything. I thought this was an important subject that definitely needed a clear explanation and should be included in the What's New, TSP FAQs. The rep said this subject is scheduled to be included in the next TSP FAQ update on 15 Sep 19.

Hoping the TSP moderator can provide further clarification on this topic.

Thank you!


This is an un-moderated forum.

Ed, in the "Federal Employee's Benefits Q&A" forum, may be able to answer your question with authority.

https://forum.federalsou...lt.aspx?g=topics&f=6


Learn to discipline yourself, so someone else doesn't have to
someoldguy  
#3 Posted : Friday, August 30, 2019 5:16:45 PM(UTC)
someoldguy

Rank: Senior Member

Groups: Registered
Joined: 10/28/2013(UTC)
Posts: 3,964

Thanks: 280 times
Was thanked: 902 time(s) in 755 post(s)
Originally Posted by: dtuhome Go to Quoted Post
The rep stated that the TSP is a 401(a) plan
Never heard that before. Now it's off to Google to see if I can figure out what that really means... Wikipedia added this confusing piece:
Quote:
Employer contributions are mandatory, while employees are not necessarily required to contribute to the plan.
I first participated in the TSP in the military and there was no employer contribution.

Edited by user Friday, August 30, 2019 5:21:14 PM(UTC)  | Reason: Add a bit of confusing info

DISCLAIMER: You read it on an open internet forum :)
Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.191 seconds.