Need to increase my withdrawals from my Thrift Savings Account
Good Morning Terry. I will need to withdraw an extra $2072 from my Thrift Savings. I will be73 next month. Would like this $$ to be invested somewhere. Are Treasury Bills the way to go?
Thanks in advance,
Terry Says
Is this your required minimum distribution, now that you are 73? If so, don’t forget to ask the TSP to withhold at least 20% for taxes. Then, given your age and the recent craziness of the financial markets, I’d recommend a money market fund or T-bills.
YOu can take the withdrawal all at once, or spread it out through the year — but having taxes withheld from each payment. I have no idea how the money is currently invested inside your TSP — but early this year I recommended having TWO YEARS of RMDs in cash in a MM fund inside your retirement plan. YOu don’t want to be speculating about the money you know you are going to withdraw.
