Ask The Experts: Money Matters

By Mike Miles

70 1/2 and survivor benefits

Bookmark and Share

Q. I have about $260,000 in my Thrift Savings Plan account and just turned 67. We don’t need extra income right now. I’ve read your advice to others concerning leaving the money in TSP and withdrawing the minimum to satisfy requirements. Assuming nothing changes between now and then, is that still your recommendation concerning the requirement for withdrawal at 70½? Second, must I take action beyond designating order of precedence to ensure the appropriate next of kin receive the account balance when I die?

A. My recommendation is simple: Delay drawing down your TSP for as long as possible. It’s not a matter of designating precedence. The law does that for you if you don’t designate the beneficiaries for your account.

Tags: , , ,

Leave a Reply

PLEASE NOTE! Do not submit ANY questions via the Comments form. Instead, please send your questions directly to fedexperts@federaltimes.com. Questions submitted via the Comments form will NOT be answered!