A copy of your 2024 Form 1099-R will also be available in your My Account secure participant mailbox by mid-February. Image: Yuriy K/Shutterstock.com
By: FEDweek StaffThe TSP has announced the following schedule for several purposes important to account holders:
“IRS Form 1099-R — In mid-January, the TSP will mail IRS Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to participants who received a withdrawal and/or a taxed or foreclosed loan between January 1 and December 31, 2024. (Due to required processing time, withdrawals requested after noon eastern time on December 27, 2024, will be considered taxable income for 2025.)
A copy of your 2024 Form 1099-R will also be available in your My Account secure participant mailbox by mid-February.
If needed, corrected forms will be issued within three weeks of verifying the correction. If you’re expecting a corrected Form 1099-R, you may wish to wait to file your taxes until you receive the form.
“Life expectancy recalculation notices — TSP life expectancy installments will be recalculated according to required updates to the assumptions used in determining those amounts. In early January, we will send notices with more information, including the recalculated amounts, to participants receiving those installments.
Notices will go out based on participants’ delivery preferences on file (by mail or online through the secure participant mailbox in My Account).
“Required minimum distribution (RMD) notices — In early January, we will mail RMD calculation notices to separated participants who will be 73 and older in 2025 and to spousal beneficiaries with RMDs due for the 2025 calendar year.
If you haven’t done so already, we encourage you to add direct deposit information in My Account to receive your money quickly and easily.”
Federal Retirees Have the Advantage When it Comes to Longevity Risk
When we invest in the Thrift Savings Plan or other investment vehicles, we realize that we must accept some level of risk. The two most common risks are:
Market risk. The risk that the entire market may go down; think 2001 and 2008. Inflation risk. The risk that your investments may lose purchasing power even as they “grow”. Think 2022. Lately I’ve read about another risk – longevity risk – but federal employees here have an advantage over most, writes John Grobe.
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See also,
Calculating Service Credit for Sick Leave At Retirement
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