When Must I Withdraw from TSP?

Shawn Plummer

CEO, The Annuity Expert

Required Minimum Withdrawals at Age 73

Understanding TSP Withdrawals

  • The Thrift Savings Plan (TSP) requires you to take Required Minimum Distributions (RMDs) at age 73.
  • This mandate ensures that savings in tax-deferred retirement accounts are eventually taxed.

Strategy If You Don’t Need the Withdrawal

  • If you don’t need the RMD for your living expenses, consider using it strategically.
  • One option is to invest in long-term care insurance. This can be a wise move to manage future healthcare costs.

Offsetting Inheritance Taxes for Beneficiaries

  • Another strategy is to use the TSP RMD to offset inheritance taxes.
  • This can be achieved by rolling the RMD into an annuity with an enhanced death benefit.
  • This approach can provide financial benefits to your heirs.

Strategies for Using TSP RMDs

StrategyDescriptionBenefits
Long-Term Care InsuranceInvest RMD in a long-term care policyManages health costs, provides peace of mind
Annuity with Death BenefitRoll RMD into an annuity with enhanced death benefitOffsets inheritance taxes, benefits heirs

Conclusion

Understanding and strategically using your TSP RMD at age 73 can provide significant financial benefits, both for your retirement and for your beneficiaries. Consider options like long-term care insurance and annuities with enhanced death benefits to make the most of these distributions.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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