MORE RMD CHANGES:

There are massive changes to RMDs that will affect the Thrift Savings Plan (TSP) for federal employees. Age changes, calculation changes, and an increase to your tax planning window will help you save tons of taxes with your investments.

[WANT MORE VIDEOS LIKE THIS?]

#TSP #RMD #requiredminimumdistribution #fersretirement #federalemployees…(read more)

LEARN MORE ABOUT: Thrift Savings Plans

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

If you’re a federal employee or retiree, you may have heard about Required Minimum Distributions (RMDs) and how they can affect your retirement savings. RMDs are a requirement for individuals who have traditional IRAs, 401(k)s, and other retirement accounts, and they mandate that individuals must begin withdrawing a certain amount of money from their accounts each year once they reach a certain age. For federal employees, this can have significant implications for their retirement planning and financial security.

So, the question is, do RMDs affect you now or soon? The answer depends on your age and whether you’re still working or already retired. Let’s break it down:

If you’re still working and contributing to the Thrift Savings Plan (TSP), the federal government’s equivalent of a 401(k), RMDs do not apply to your TSP account until you separate from federal service. This means that you can continue to contribute to your TSP and watch your savings grow without the worry of having to take mandatory distributions until you are ready to retire.

However, once you separate from federal service and roll over your TSP balance into an IRA, RMDs will kick in once you reach the age of 72. At this point, you will need to start withdrawing a certain percentage of your retirement savings each year, based on your life expectancy and the balance of your accounts. Failure to take RMDs can result in significant penalties, so it’s important to understand your obligations and plan accordingly.

If you’re already retired, whether you’re a federal employee or not, RMDs are relevant to you now. You must begin taking RMDs from your traditional IRAs and other retirement accounts by April 1st of the year following the year you turn 72 (or 70 ½ if you reached that age before January 1, 2020). Failing to do so can also result in steep penalties, so it’s crucial to stay on top of your RMD obligations.

Given the complexity and potential impact of RMDs on your retirement planning, it’s essential to seek guidance from a financial advisor who understands the specific rules and regulations that apply to federal employees and their retirement accounts. Additionally, staying informed about changes to RMD rules and regulations, as well as strategies for minimizing the tax implications of RMDs, can help you make the most of your retirement savings.

In conclusion, whether RMDs affect you now or soon depends on your age and employment status. If you’re still working as a federal employee and contributing to the TSP, RMDs won’t apply to you until you separate from federal service. Once you’re retired, you will need to start taking RMDs from your traditional IRAs and other retirement accounts. Regardless of your situation, it’s essential to stay informed and seek expert advice to ensure that you’re making the most of your retirement savings and avoiding any costly mistakes.