No. of Recommendations: 0
I think you might rethink this strategy. If you wait until age 70 to tap your TSP funds, the combination of your military pension, your (two) Social Security payments, and your TSP RMDs, may well catapault you into a much higher tax bracket than you're in now.

Agree completely.

If you don't begin SS, between the age of 62 and 66 + XX months (full retirement age), your SS benefit will increase at about 6.7% per year + COLA. Between FRA and 70, it will grow by 8%/yr + COLA.

The RMD is a tax event, not a household cash flow event, although just about everybody who speaks of it, speaks as though its cash flow event. Nothing in the IRS code requires the RMD to be converted to cash, withdrawn and spent...only that the value of the RMD be removed from the IRA each year at 70.5 and beyond. So if you get to 70.5 and have a $1MM TSP/TIRA, that means you'll have to add $36,500 to your taxable income without any increase in your net worth or household income. It is an attention getting and sobering tax event that you'll wish like crazy you'd managed out 10 years ago.

So I second the strategy of leaving your SS alone and living on your TIRA/TSP savings + Military pension, and start your SS later.

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