TSP withdrawals/ROTH conversion
Given current domestic uncertainty, what do you think best to handle RMD of TSP and do you think ROTH conversion during this year that I turn 72? I am retired living on SS and small federal annuity and savings interest, so I am not high value income. thank you
Terry Says
If you’re in a low tax bracket and soon required to take RMDs, I think you should forget about the Roth conversion idea. that works best if you’re in a high bracket –and have extra money outside of your retirement account to pay the taxes.
At this stage of life, and facing RMDs, at least half of your TSP should be in the most conservative money market option within the plan.
