Can I stay in the TSP past age 70 1/2

« Back to Previous Page
Category:
6
♥ 0

I don’t want to spend my Roth TSP balance at age 70 1/2 and I want to stay with TSP. What do I do?

How can I MAX the amount of my rollover of my Roth TSP to a Roth IRA given proportional rule and want to stay in TSP? My Traditional TSP balance is 200K and Roth TSP balance is 50K… Do I do partial withdrawal of 200K which would allow me to rollover 50K to Roth IRA and rollover 150K back to TSP?

ADVERTISEMENT

Blocked by moderator
Posted by (Questions: 2, Answers: 0)
Asked on July 27, 2017 3:27 pm
1785 views
6
✔
Private answer

You’re on the right track. You can do a rollover (which would have to be proportional) from the TSP and then roll the traditional balance back into the TSP. You need to have at least $200 in your TSP account to keep it open, so be sure to leave at least that amount in the TSP when you do your rollover.
Here’s an example: You can roll over $190,000 of your account to two outside IRAs. This would result in you having rolled $142,500 to a traditional IRA and $47,500 to a Roth IRA. You would have $10,000 left in your TSP account, consisting of $7,500 traditional and $2,500 Roth.
Then you roll the $142,500 from your traditional IRA back into the TSP. Now you will have $150,000 in your traditional TSP and $2,500 in your Roth TSP. If you took withdrawals from the TSP, the vast majority of the money you took would be from your traditional balance and only a small amount from the Roth balance.
The remainder of your Roth investments would be in an IRA and not subject to the requirement that you take required minimum distributions

Blocked by moderator
Posted by (Questions: 0, Answers: 64)
Answered on July 30, 2017 7:39 pm
« Back to Previous Page