Re: [TSPStrategy] Maybe leaving the TSP

Although, I'm years away to worry about RMDs, I'd say to leave it in the TSP for as long as you can.  If you're conservative,  there is no vehicle like the G fund outside.  Take out what you need,  enjoy your life but I personally would not take it out to roll it over.   I understand you'll probably get 10 opinions from 10 people on this.  

One interesting tidbit, I recently realized.. I was updating my liability insurance for home as well as auto.  In determining how much I need to protect,  the agent said that typically your 401k (TSP) is immune from lawsuits. I'm sure that was more of a rule of thumb than a hard and fast rule.  However, that was enough to convince me to leave it in as long as possible.  

If I'm enjoying my life and making the required withdrawals,  but there's still a large balance when I'm gone, I can leave it to my kids or to any charity of my choice.  

KC Will

 

On Wed, Feb 10, 2021 at 12:40 PM, Del Brett

<bretdelman@msn.com> wrote:

Required Minimum Distributions are 7 years away for you, probably need to try to double your balance or come close by then is my opinion.

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From: TSPStrategy@groups.io <TSPStrategy@groups.io> on behalf of Sky Paxton <sky@familystones.net>
Sent: Wednesday, February 10, 2021 11:31 AM
To: TSPStrategy@groups.io <TSPStrategy@groups.io>
Subject: [TSPStrategy] Maybe leaving the TSP

 

All in or out aside, ( btw I went all G in Jan) I'm looking for advice.

I turn 65 this year. It won't be long before Required Minimum Distributions kick in. I've been retired since 55 and taking out a modest 3k a month since I retired yet due largely to our many blessings and advice from this group the tsp balance has significantly increased.

My questions should I take large distributions out every year now until I'm 70 to take advantage of the favorable tax law or wait and see what the new tax rate will be in 5 years?

If I take the large distribution every year now(leaning this way), should I roll it into an IRA then convert to a Roth?  There will be a significant amount to leave to my heirs unless something dramatic changes?

Thanks and Blessings to all,

Skyler