By Mike Miles
January 28th, 2011 | Uncategorized
Q: Thank you for your previous answer regarding my TSP account and when I must start taking withdrawals. Is it possible to rollover my total TSP account to my IRA with my local credit union and start taking taxable withdrawal that way? Would the withdrawal of payments still be the same?
A: After you retire, it is possible to rollover your TSP balance to an IRA, but this will not change your minimum distribution requirements. If you want the smallest distribution possible, you can leave your money in the TSP and request monthly distributions based on your life expectancy. If you don’t need the money, just deposit the net receipts into a taxable investment account so it can continue to grow as it would have in the TSP.
February 1st, 2011 at 9:44 am
Why would you recommend placing unneeded monies into a taxable account? You just paid taxes on the distribution. Would it not be preferable to place unneeded monies into a Roth account which can be transferred to heirs when the time comes?