Ask The Experts: Money Matters

By Mike Miles


Bookmark and Share

Q. I’m trying to understand why the Thrift Savings Plan calculator that allows “monthly” or “lifetime” projections automatically defaults to the required minimum distribution amount at age 70½ when my (expected) withdrawals are more than the Internal Revenue Service RMD limit. Which takes precedence: the IRS RMD which produces a significantly smaller amount of TSP payout, or the amount I wish to take out?

A. You must take at least the RMD amount each year to avoid a substantial penalty.

Tags: , , , , ,

Leave a Reply

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