Required Minimum Distributions from TSP

[Scout333]

Has anyone been required to change their TSP withdrawal amounts due to minimum distributions? I understand the age requirement is now 72. Something I read indicated that the amount would be adjusted if it was not sufficient? If anyone has met the RMD age requirements how was your TSP account treated?
Thanks for sharing!
Scout333

 

[exnavyew]

Not directly related, just FYI:
[h=1]Good News for Retirees: RMD Formula Changing for First Time in Decades[/h]
https://finance.yahoo.com/news/good-news-retirees-rmd-formula-213101624.html

 

[evilanne]

Thank you exnavyew!
It doesn't look like TSP has updated to new charts yet in their calculator for Retirement Payments/Annuities. It appears that the numbers also changed for life expectancy payments. https://www.irahelp.com/slottreport/new-2022-irs-life-expectancy-tables-available-here but TSP is using the old tables to calculate LE payments under 72(t) procedure. I'm not sure if that will be an issue come tax time next year. With new tables, my payment would be about $150 less each month. TSP has their hands full with this change...it is going to be a royal mess.

Scout333,
My understanding is they will make sure you take the full RMD. I believe they will send you any deficient amount at end of year which is a good thing since any RMD you do not take is taxed at 50%. Under the new tables, it will be less than before. It is easy to calculate based on your end of year balance and the table factor for your age. As long as you withdraw the RMD or more, there shouldn't be any issue.
Happy Trails

 

[Scout333]

Thank you exnavyew!
It doesn't look like TSP has updated to new charts yet in their calculator for Retirement Payments/Annuities. It appears that the numbers also changed for life expectancy payments. https://www.irahelp.com/slottreport/new-2022-irs-life-expectancy-tables-available-here but TSP is using the old tables to calculate LE payments under 72(t) procedure. I'm not sure if that will be an issue come tax time next year. With new tables, my payment would be about $150 less each month. TSP has their hands full with this change...it is going to be a royal mess.

Scout333,
My understanding is they will make sure you take the full RMD. I believe they will send you any deficient amount at end of year which is a good thing since any RMD you do not take is taxed at 50%. Under the new tables, it will be less than before. It is easy to calculate based on your end of year balance and the table factor for your age. As long as you withdraw the RMD or more, there shouldn't be any issue.
Happy Trails

Thanks EA!

 

[TommyIV]

Potential change of age for required minimum distributions.

"The new legislation raises that age again, from 72 today to 73 starting on Jan. 1, 2023 and to 75 starting on Jan. 1, 2033."

Big Changes to 401(k) Retirement Plans Move Ahead in Congress

 

[nasa1974]

Good to know. Thanks.