Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
TSP non-spousal beneficiary twist
Old 06-04-2013, 12:37 PM   #1
Thinks s/he gets paid by the post
timo2's Avatar
 
Join Date: Jul 2011
Location: Rio Rancho
Posts: 1,438
TSP non-spousal beneficiary twist

This article involves the situation where the spousal beneficiary leaves a TSP account to their heirs. The heirs of the surviving spouse have tax issues if they inherit a TSP account. It appears the best thing for a spouse who inherits a TSP account to do is convert it to an IRA immediately.

Beneficiary Beware - Retirement Planning - Pay & Benefits - GovExec.com

Myself, I plan on promptly spending my entirety TSP promptly, so will not have this issue.
__________________

__________________
"We live the lives we lead because of the thoughts we think" Michael O’Neill
timo2 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-07-2013, 06:35 AM   #2
Full time employment: Posting here.
Redbugdave's Avatar
 
Join Date: Apr 2006
Location: Columbia, SC
Posts: 959
Thank you Timo. You can run the numbers and like you said...spend it down on a 30 or 35 year plan. My idea, too.
__________________

__________________
"I either want less corruption, or more chance to participate in it." Ashleigh Brilliant
Redbugdave is offline   Reply With Quote
Old 06-07-2013, 12:20 PM   #3
Thinks s/he gets paid by the post
timo2's Avatar
 
Join Date: Jul 2011
Location: Rio Rancho
Posts: 1,438
Quote:
Originally Posted by Redbugdave View Post
Thank you Timo. You can run the numbers and like you said...spend it down on a 30 or 35 year plan. My idea, too.
My spend down is much shorter - like in five years. I don't have enough TSP for a 30 year drawdown that I like, but can live off of TSP and FERS until I'm 70 to get the higher SS income. The SS will last however long I and/or my DW need it.
__________________
"We live the lives we lead because of the thoughts we think" Michael O’Neill
timo2 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 09:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.