72(t) for Fed Emp

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L1: 72(t) for Fed EmpHello,This question concerns a gov. TSP account. If I use the annuitization method with monthly distributions (following all the rules), does anyone see a problem with leaving my money in the TSP fund instead of rolling it over to an IRA? It seems fairly straight ahead to me, but it’s new territory. Can you round off your monthly distribution to even dollar amounts? Line 23c on formTSP-70 seems to indicate that is what the gov requires. Thanks.2010-01-31 17:40, By: Boater, IP: []
L2: 72(t) for Fed Emp>>to indicate that is what the gov requires. I think what you really mean is that it may be a requirement of the TSP, notnecessarly an IRS requirement and not all branches of the government are created equal. The TSP doesn’t really support SEPP plans or they merely have a really bad administrative system.In terms of rounding, calculate the annual distribution and divide by 12 – round to the nearest cent as in ###.## – another alternativeis to take the annual distribution as a withdrawal and manage it yourself.2010-01-31 18:09, By: Gfw, IP: []

L2: 72(t) for Fed EmpMy research says that you are exactly right. Request monthly payments based on the 72t amount that you or your CPA calculates and file the form 5329 (I think) and indicate you are using a SEPP. You need a code 2 on that form.Anyone with different info please let us know.2010-01-31 22:44, By: CL, IP: []