Federal Thrift Savings Plan

Question

At the age of 73, I'll have to start withdrawing from my Federal Thrift Savings Plan and adding to my taxable income.  Is there a better alternative for tax relief?

MatthewD · Accepted Answer

Hi Joe1_b,

When you reach age 73, you must take a required minimum distribution (RMD) for a Federal Thrift Savings Plan, which will add to your taxable income.

If you are charitably inclined, you can donate annually directly to a charity via a Qualified Charitable Distributions (QCDs from your TSP to a qualified charity. This transfer counts toward your RMD but is excluded from your taxable income, which can significantly lower your Adjusted Gross Income (AGI).