TSP - which way to go?

[RDB]

I'm just starting to read about Thrift Savings Plan withdrawal options.
If you understand the TSP withdrawal rules, maybe you can help me decide which move to make, if any.

We have G fund only. This is my (age 70 1/2) year.

The way I understand, I can keep the TSP, but must start a drawdown this year and pay tax on that withdrawal... OR ... have them purchase a TSP annuity (with MetLife) where I designate monthly or annual payments.

It is likely that one of us will live 15 more years. I'm 71 on 3 March 2009. Caroll will be 68 in Feb.

Any TSP participant opinions?

Robert

 

[The Conch Man]

Your right on the money RDB, at 70 & a half you have to start withdrawing your money from TSP. I'm in the G-Fund as well not sure you would want the annuity as you have withdraw either way. The only difference is how much money you want to withdraw as to your income pension you get in a years time. My suggestion is to withdraw all of it & pay the taxes if your income isn't very high, get it out of the way & deposit into a IRA or CD.

Monthly withdrawals maybe the right way to go based on your income pension so you won't have to worry bout it until next tax season to see how it affects you. Just do some analyst of which way to go & lot easier for your to decide. I'd rather pay the taxes in one year & not have to worry bout it in later years.

 

[Don]

I'm getting the monthly annuity. I will get that annuity every month for the rest of my life, even after the original amount of it has been paid out. But, if I were to pass away before all of my money is paid out, my beneficiary gets the remainder. For example, if I had $20,000 put into the anniuty and got $1000 a month (unrealistic, I know) it would be paid out in 20 months. If I passed away after 10 months my wife would get the remaining $10000. But if I lived for an additional 20 years, I would keep getting the monthly payment.