The Motley Fool Discussion Boards

Previous Page

Financial Planning / Thrift Savings Plan (TSP)

URL:  http://boards.fool.com/the-biggest-objection-i-have-is-that-one-may-not-30469839.aspx

Subject:  Re: Roth Date:  1/6/2013  4:07 PM
Author:  JudasTouch Number:  82 of 83

The biggest objection I have is that one may not withdraw solely from one TSP account or another--distributions must be drawn from both. One chief benefit of having both taxable and tax-free investment accounts is that one may choose the account from which retirement funds are drawn based on the expected tax impact.

By mandating that retirees draw from both, all distributions will contribute to a taxpayer's AGI. No fun if you're trying to minimize taxable income in a given year.

Here's a handy chart: https://www.tsp.gov/planparticipation/eligibility/comparison...
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us