By Mike Miles
December 14th, 2009 | Uncategorized
Q: My 2010 “annual” required minimum distribution from my Thrift Savings Plan will be approximately $8,500 (about $710 per month). My “monthly” withdrawals will be $2,000.00. If I roll over to a Roth IRA that part of my withdrawal that exceeds my required minimum distribution, can I start deposits to my IRA of $1,290 in January and each month after that, or do I have to wait until May, at which time my entire “annual” required minimum distribution will be met before I can make deposits to my Roth IRA?
A: The limits are annual limits, so what matters is that at the end of the year, the numbers work out within those that apply.
December 14th, 2009 at 10:56 pm
I would advice everyone to be careful with converting to Roth IRA, it’s necessarily better than traditional 401K or even simple IRA account. It really depends on your current (and more importantly future) financial situation and taxation rules that apply to you.
Here’s some more helpful information: http://www.rothirarules.net
July 31st, 2010 at 8:45 pm
I just recived a letter from IRS stating we owed them 856.00 for tax year 2008 for a Thrift plan that was reported to the IRS that was not filed on our 1040 form. It stated or the amount 3,556 dollars. We never cashed out any thrift plan for that amount or are even aware that we had an account with that much in it. My husband did get out of the military in 2008, but nothing was sent to us and he didn;t cash anything out. He did cash somthing out back in 2006, but we reported it. not sure what to so or where to go to get all the info I need to resolve this problem,