By Mike Miles
401(k) beneficiary and taxes
February 20th, 2013 | Uncategorized
Q. My husband has a substantial sum in his private company’s 401(k). I am the beneficiary on this account. If he dies and the money goes to me, may I put that money into my Thrift Savings Program, since that money is all pretax?
A. Good question! If it winds up in a 401(k) or IRA solely in your name (not in a beneficiary account), it is eligible to be moved into your TSP account.
RMD and beneficiaries
January 23rd, 2013 | Uncategorized
Q. If I leave the Thrift Savings Plan funds in TSP after I retire, I assume I am required to take required minimum distributions. Is this correct? If I leave the funds there and name trusts as beneficiaries, can a beneficiary then move the funds to an inherited stretch IRA after I die?
A. Your TSP account is subject to RMD requirements once you reach age 70½ and are separated from federal employment. There is no simple, universal answer to your trust beneficiary question. It depends upon the trust, and you should consult an estate planning attorney before going down this path.
Tags: 70 1/2, beneficiary, IRA, Required Minimum Distribution, transfer, TSP
Beneficiary IRAs
December 31st, 2012 | Uncategorized
Q. My husband and I inherited IRAs from my mother when she passed away at age 86. Why must I take required minimum distributions from these IRAs when I am only 59 years old and my husband is 46?
A. Because the rules for beneficiary IRAs say you do. Or, you could not and pay the 50 percent penalty instead.
Tags: beneficiary, IRA, penalty, Required Minimum Distribution
Roth TSP beneficiary
June 11th, 2012 | Uncategorized
Q. I have an existing Roth account with AmeriFund. The beneficiary to this fund is my daughter. If I roll this over into the Thrift Savings Plan, can I still have my daughter beneficiary and my husband beneficiary of my traditional TSP, since the funds remain in separate pretaxed and nontaxed accounts?
A. One beneficiary designation will apply to both the traditional and Roth balances in your TSP account.
Tags: beneficiary, rollover, Roth TSP, taxes
TSP beneficiary
April 4th, 2012 | Uncategorized
Q. Can I designate my adult, nondependent child as a beneficiary for my Thrift Savings Plan lifetime annuity? Would they be considered an “insurable interest”? This would be a perfectly healthy adult child that may or may not be married at any given time.
A. You may name anyone you choose as a beneficiary for your TSP life annuity. There is no insurable interest requirement for beneficiaries.
Tags: annuity, beneficiary, TSP