RMDs from Trad & Roth

RMDs from Trad & Roth

RMDs (Required Minimum Distributions) apply to traditional TSP contributions, where the IRS mandates withdrawals based on age to collect taxes. In the past, RMDs were also taken from Roth contributions, although it didn’t align with taxing Roth accounts. However, the law has been updated to only require RMDs from traditional TSP contributions, making the process more logical and in line with tax principles.

– RMDs are mandatory withdrawals from TSP accounts, and they are determined based on the account holder’s age.

– It used to be that RMDs were taken from both traditional and Roth TSP contributions, which didn’t make sense since Roth contributions are already tax-free.

– The law has been changed, and now RMDs are only taken from traditional TSP contributions, which is more logical and fair.

– Subscribing to the channel and hitting the notification button provides access to valuable information and learning opportunities.

– Understanding the rules and regulations surrounding RMDs is crucial for managing your TSP effectively.

– The change in the law regarding RMDs demonstrates a positive development towards aligning the rules with the taxation principles.

– Joining the channel and participating in workshops can help individuals stay informed and make informed decisions about their TSP contributions.

Join us at a Fed Pilot workshop (webinar or in-person) and not only learn about your benefits, but how to prepare for retirement. The earlier in your career, the better.

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