Two questions re Thrift Savings

Submitted by James Magno on Sun, 2020-08-09 21:15

#1 – taxpayer retires in 2020 and first RMD generally due 4/1/2021 and second due 12/31/2021.
Is it correct that the first RMD for year of separation is not required due to Covid Relief) ?
#2 – when the first RMD is taken , it appears that only one year of distribution is required, not a catch up for working past age 70.5. Clients financial advisor insists that all prior RMDs are due- where does this come from?
I look at IRS rules and when I go to thrift site, I do not see much help there- any suggestions on resources are appreciated.
Thanks
Jim M



Submitted by Alan - IRA critic on Mon, 2020-08-10 00:33

  1. Correct, the 2020 RMD for the distribution year (RBD 4/1/2021) has been waived by Sec 2203 of the CARES Act.
  2. Financial advisor is incorrect. The TSP is generally slow to post changes on their site. But even in the unlikely chance the TSP would distribute a 2020 RMD, even in 2021 it could be rolled over with a 60 day rollover.


Add new comment

Log in or register to post comments