TSP non-spousal beneficiary twist

[timo2]

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.

[Redbugdave]

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.

[timo2]

Quote:

Originally Posted by Redbugdave 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.