Does TSP annuity count as required minimum distribution?

« Back to Previous Page
0
♥ 0

I turned 70 1/2 this year. If I convert my TSP balance to an annuity before the end of the year, does that satisfy the RMD requirement, or must I Take the RMD and start the annuity for next year?

Blocked by moderator
Posted by (Questions: 1, Answers: 0)
Asked on July 31, 2018 4:26 pm
449 views
0
✔
Private answer

You can start the annuity this year. If you purchase the annuity prior to the day you reach 70 1/2, you will not need to take a required minimum distribution. If, however, you are 70 1/2 or older when you purchase the annuity, you will need to take your required minimum distribution first.
Here’s a link to an IRS fact sheet on RMDs
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds

Blocked by moderator
Posted by (Questions: 0, Answers: 74)
Answered on August 1, 2018 11:55 am
0
✔
Private answer

You can start the annuity this year. If you purchase the annuity prior to the day you reach 70 1/2, you will not need to take a required minimum distribution. If, however, you are 70 1/2 or older when you purchase the annuity, you will need to take your required minimum distribution first.
Here’s a link to an IRS fact sheet on RMDs
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds

Blocked by moderator
Posted by (Questions: 0, Answers: 74)
Answered on August 1, 2018 11:55 am
« Back to Previous Page