72t for TSP
L1: 72t for TSPAre guidelines different for a TSP? If so, what do I need to be aware of and where can I find more specifics? Thank YOU2016-04-18 21:54, By: Rantoby, IP: [220.127.116.11]
L2: 72t for TSPIt is legal to execute a 72t plan from the TSP, but certainly not recommended because you lose some control of your plan and must adapt your 72t to the many TSP restrictive distribution rules. I believe they offer a fixed monthly installment plan but otherwise provide no support for your plan. For example, if a payment is messed up, do not expect the TSP to consider your 72t plan to get it fixed. It would be preferable to have your plan funded by an IRA account in which you have full control of what is distributed and when. Forget the TSP altogether if you have a Roth TSP balance because I think they require distributions from both the pre tax and Roth accounts, which adds even more moving parts.
If you still want to gamble with the TSP as custodian for your 72t plan, be sure you start your plan after all possible contributions have ended including any matching or forfeitures if the TSP has forfeiture deposits. Have the installments paid around mid month, never near the beginning or end of the month, and triple check your 72t distribution amount before starting the installments. 2016-04-19 00:01, By: Alan S, IP: [18.104.22.168]