Another Reason for a Roth Conversion - The Widow's Penalty

[@noway5976]

I’ve heard it called the Window’s Tax Trap. Definitely a concern if you have a large amount of pretax money and get RMDs. Maybe Qualified Charitable Distributions if the person is inclined to help offset?

[@FederalRetirementPlanning]

Yes, QCDs are always a good idea but u have to be 70.5 to be able to do them. Funds also have to be in an IRA because TSP doesn’t allow them

[@noway5976]

@@FederalRetirementPlanning That’s one more reason to consider moving funds out of the TSP