If you decide on a series of monthly payments, you can choose:
- a specific dollar amount you want to receive each month;
- a series of monthly payments computed by the TSP based on an IRS life expectancy table.
Note: If the amount elected does not satisfy the IRS minimum withdrawal requirements the TSP will increase the amount so that the requirements are satisfied after April 1 of the year after you reach age 70 1/2.
All or part of the monthly payments may be transferred into an IRA or other qualified retirement account.
If you ask to receive monthly payments, you may continue to manage your investments as you wish, making whatever adjustments among the funds you want to. However, be aware that losses due to investments in any fund other than the G fund could reduce the number of payments you receive.
After your payments have begun, you can change:
- to a final single payment;
- the proportion transferred to an IRA or other eligible retirement plan; or
- the IRA or plan to which your payments are sent.
If you elect the fixed dollar amount payment, you can change the dollar amount once a year. Those electing life expectancy based payments have a one-time opportunity lifetime to change to fixed dollar amount payments.
If you are still receiving a series of monthly payments from your TSP account in the year after you become 70 1/2, you will be subject to the IRS minimum distribution requirements. (See IRS Publication 590 for details, including how to figure your minimum required distribution.)