I haven't talked to TSP yet but it looks like they withhold 20% for taxes on age-based withdrawals. (FRA coming up soon.) However it seems that if I roll it over to an IRA no funds are withheld. True? No? Any feedback or related links are welcome!
Check out this article: https://www.thebalance.com/clearing-spousal-benefits-confusion-2388948
I haven't talked to TSP yet but it looks like they withhold 20% for taxes on age-based withdrawals. (FRA coming up soon.) However it seems that if I roll it over to an IRA no funds are withheld. True? No? Any feedback or related links are welcome!
Responding to rakendzior:
Yes, they are still predicting the change to the 2017 law to be implemented by Sept 2019.
Until then, only 1. Second one has to be ‘the rest’.
New rules under the 2017 law....unlimited number.
Go figure.
There are 10 types of people in the world. Those who know binary, and those that don't!!
Retired on December 31, 2018!!
There are 10 types of people in the world. Those who know binary, and those that don't!!
Retired on December 31, 2018!!
Not sure I understand. FRA = full retirement age, in my case 66.
Mindful that I'm new to TSP details, when you say "FRA burden', do you mean required minimum distributions (RMDs)? Not sure how to help you yet.
Hypothetically, you could gift an asset you already have to a charitable organization willing to take it. That would allow you to take a charitable deduction, assuming the new tax law doesn't stop that, and use the charitable deduction to offset the tax burden incurred by taking an equivalent taxable distribution from a qualified account. I am not a tax person; you must run this past a tax person first.
If I rollover TSP money to a brokerage IRA (say Fidelity - which allows me to use the $$ to trade). My understanding is that:
A: 100% of the TSP monies would rollover (I'm north of age 60).
B: any disbursement from that IRA to say my checking account would be considered taxable income and so reported to the IRS by 'Fidelity'.
Is that correct?
Lots of info here and a great thread. Back to the social security and spouse’s social security question which is not real easy to figure out estimates for. Everything except for the spouses own estimated benefit is based on the “workers primary insurance amount”. The primary insurance amount (PIA) is defined as “The ‘primary insurance amount’ (PIA) is the benefit (before rounding down to next lower whole dollar) a person would receive if he/she elects to begin receiving retirement benefits at his/her normal retirement age. At this age, the benefit is neither reduced for early retirement nor increased for delayed retirement”. You can figure yours out at https://www.thebalance.com/social-se...-guide-2388927. I went to ssa.gov, established a chat session, asked to speak to an expert and got mine. I didn’t know at the time to ask if this would change before I started receiving benefits. Apparently so since I have ss income in 2019 which exceeds my income 35 years ago. I also didn’t ask when this amount gets set in stone. I think when you start receiving benefits.
According to the formula in https://www.thebalance.com/clearing-...fusion-2388948, Take the older spouse's PIA divided by 2, minus the younger spouse's PIA. $2,100/2 = $1,050 - $800 = $250. In my case 2460/2=1230 – 1513 = less than 0.
Since the wife’s (age 63) latest ss estimate says $1225 if she applies now and $1555 if she waits until 66y 4m, I see no advantage for her to wait until I apply.
It’s all somewhat ambiguous especially the estimated amounts. Someone correct me if I am way wrong.
PO
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