TSP Modernization Act - Any traction on this legislation?

[Maricar19]

You definitely have to find that post-retirement income sweet spot where you have adequate $$$ for wants and needs, but you minimize your tax burden to the extent possible. I know it took me a couple of years to find it. Now my wife is retiring mid-year and I’ll have re-calculate to take that into account.
It’s an ever changing balancing act.

Would you mind sharing how you minimize the tax burden? Are you already withdrawing from TSP?

 

[RazorCat]

Would you mind sharing how you minimize the tax burden? Are you already withdrawing from TSP?

Only withdrawing $200.00 per month right now (fishing is expensive). My wife is retiring mid-year. I increased it to $800.00 per month to keep my fishing money, and cover what she was putting in savings for our home projects fund from her salary until we have a handle on expenses vs. income with her no longer working. The rest of her salary is covered by withdrawals from her IRA (only until she hits 62). Problem is, I’m locked in for the year since we have a December 15th deadline for changes to monthly payments. I doubt seriously we’ll need the entire $7,200.00 added. But, it counts as taxable income anyway. I’d rather keep it in TSP making interest (hopefully) and only draw out what I need, when I need it. It’s not a huge deal, but anything I can leave in TSP draws more interest, and doesn’t raise my taxable income.
That’s just how look at it.

 

[RazorCat]

Received an e-mail from TSP today titled Information about changes to TSP withdrawal options


Nothing surprising, but might answer questions some have about current employment and withdrawal status vs. future options available under the TSP Modernization Act.
https://www.tsp.gov/PDF/formspubs/tspfs10.pdf

 

[tom4jean]

This just in;

https://www.myfederalretirement.com/public/tsp-modernization-faq.cfm