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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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codye  
#1 Posted : Wednesday, November 17, 2021 7:18:23 AM(UTC)
codye

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I retired 2005. I have kept my TSP in the C & S Funds. I will be 72 Feb 2022. I understand I must start my MWD next year. Any idea what that amount might be per month? Since I did very well using those funds I never considered moving them into an IRA etc. Does it make any sense to consider moving my TSP into an IRA now? I have read that I will pay 20% tax when I start my MWD in TSP is that correct or close? Just looking for some guidance how to best keep as much of my TSP as possible for as long as possible.
Navy Bubblehead  
#2 Posted : Wednesday, November 17, 2021 8:38:13 AM(UTC)
Navy Bubblehead

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Your taxes will be whatever your tax rate is. They may withhold 20% as a default, but you may find you owe more at the end of the year. Also, the RMD applies to IRAs as well as your TSP, so six in one, half dozen in the other.
TheRealOrange  
#3 Posted : Wednesday, November 17, 2021 9:31:00 AM(UTC)
TheRealOrange

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Originally Posted by: codye Go to Quoted Post
I retired 2005. I have kept my TSP in the C & S Funds. I will be 72 Feb 2022. I understand I must start my MWD next year. Any idea what that amount might be per month? Since I did very well using those funds I never considered moving them into an IRA etc. Does it make any sense to consider moving my TSP into an IRA now? I have read that I will pay 20% tax when I start my MWD in TSP is that correct or close? Just looking for some guidance how to best keep as much of my TSP as possible for as long as possible.

I've never seen the acronym "MWD" before in this context, so I am assuming you are referring the the Required Minimum Distribution (RMD). There are quite a few online RMD calculators available to get the RMD amount you're required to take. Here is a link to one available through the SEC:

https://www.investor.gov...-distribution-calculator

More than likely, the 20 percent withholding will take place, but what you actually have to pay in taxes will depend on your overall income (annuity, Social Security, TSP withdrawal, etc.) and applicable rate.
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