Federal Thrift Savings Plan

joe1_b
joe1_b Member Posts: 2 Newcomer
in Retirement Income

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?

Best Answer

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 684 image
    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).

Answers

  • joe1_b
    joe1_b Member Posts: 2 Newcomer

    Thank you, however, my favorite charity is myself…

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