By the way, in this whole ordeal of attempting to understand and learn the TSP death benefit distribution rules, I have gotten incomplete, confusing, misleading and punting from multiple professionals who in my opinion should know this stuff. The pros included a trust lawyer, a certified financial planner and two different associates at the Thriftline. Pretty shocking to me!
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Or you can now use TapaTalk again!TSP beneficiary question
- Thread starter JD1964
- Start date
Doesn't surprise me at all.Furthermore, I believe I have the documentation which confirms that a Trust can handle the task of rolling a TSP into an inherited IRA. Keep in mind that this requires that the Trust is listed as the "primary" beneficiary.
Read the second paragraph of page 15 in this document > TSPBK26 Titled Tax Rules for TSP PaymentsI think the TSP rules are ridiculous! I mean seriously, think about how many TSP account owners will naturally name their spouse as the beneficiary. Then when the spouse dies, the account cannot be converted to an IRA and the next beneficiary must take full payout in a single tax year. Why is that the rule? What is the logic behind preventing the next beneficiary from having options? To me it seems like an underhanded way for the IRS to get a bigger portion of our hard earned money. Disgraceful in my opinion!Similar threads
