@@aaront936 As *HFA* states RMDs (if neither you nor spouse don't work) may not be rolled into Roth IRA. However if your spouse works you can contribute (using that RMD money) up to $7,000 to Roth IRA.
Here is my QUESTION: Let’s pretend I have to take out $20k RMD from my TSP. Let’s also say 50% of my $ is in traditional and 50% is Roth. If I take out $10k from traditional and $10k from Roth, does that mean I only pay 50% taxes on that RMD for that year? If that is true, I see how having a good chunk of $ in Roth TSP could be a huge strategic tool for RMDs.. because the ROTH part of the distrubtion is not part of IRMAA, correct?
I didn’t understand the statement about not drawing down from TSP first will help RMDs. It seems like it would be the opposite. Drawing down from your TSP first would reduce the RMD since your TSP balance would be less by the time you are 72. I’m 66 now withdrawing from TSP now since I retired at 63.
Thank you for this information.
Glad it was helpful!
Good morning, does this apply for Federal employees in Puerto Rico, we don't pay federal taxes.
Thanks
My pleasure, Have a great day!
Why is your example is age 85 and not age 72 which is the RMD?
best info ever! his info should be distributed to all fed employees I was with usps andw would have loved this
Glad it was helpful!
Thanks Dallen.
My pleasure, Have a great day!
Great topic, thanks
My pleasure, Have a great day!
Love this guy. Hitting topics that people are freaking out about.
My pleasure, Have a great day!
So after you are forced to take the RMD if you dont need it were can you put it to get the most out of it for when you do need it?
Put it in a taxable/brokerage account.
Roll it into a roth ira
Unfortunately, you can't put RMD's into a roth ira
@@aaront936 As *HFA* states RMDs (if neither you nor spouse don't work) may not be rolled into Roth IRA. However if your spouse works you can contribute (using that RMD money) up to $7,000 to Roth IRA.
When you begin to withdraw the RMDs at age 72, does the balance of your account "lock in" or will the balance continue to grow?
If you continue to invest your balance then it can grow.
Wouldn’t there be a double tax hit leaving traditional tsp and moving it into a Roth IRA.?
Can you talk about the tsp retirement age requirement being pushed up for federal employees?
I'll put it on the list.
Here is my QUESTION: Let’s pretend I have to take out $20k RMD from my TSP. Let’s also say 50% of my $ is in traditional and 50% is Roth. If I take out $10k from traditional and $10k from Roth, does that mean I only pay 50% taxes on that RMD for that year?
If that is true, I see how having a good chunk of $ in Roth TSP could be a huge strategic tool for RMDs.. because the ROTH part of the distrubtion is not part of IRMAA, correct?
I didn’t understand the statement about not drawing down from TSP first will help RMDs. It seems like it would be the opposite. Drawing down from your TSP first would reduce the RMD since your TSP balance would be less by the time you are 72. I’m 66 now withdrawing from TSP now since I retired at 63.
Thanks for sharing Robin!
I have one question. I turned 70 last December. When do I need to start withdrawing the minimum money from my TSP?
The year you turn 72, by April 1st.