TSP secure act RMD
Good afternoon, I inherited a Thrift Savings plan and rolled it into an inherited IRA last year with Tiaa. I thought I would be able to take stretch rmd’s for my expected lifetime (as this was a governmental plan) Tiaa is telling me that this is no longer a government plan and that I am subject to the 10 year rule. Date of death was 6/17/20 (65). I am 43 (non spouse no other exemptions). Three total beneficiaries. Any thoughts?
Mike
Permalink Submitted by Alan - IRA critic on Thu, 2021-06-03 18:02
It shouldn’t matter that your inherited account is no longer is a govt plan. You inherited a govt plan before the Secure Act affected beneficiary RMDs under that plan, and the transfer to an IRA does not abort your ability to use LE RMDs. But just in case the rep actually has some official guidance that supports their position, you might ask for a citation of that guidance.
Meanwhile, you have unlimited access to your inherited IRA (even if the 10 year rule DID apply), so I would calculate your 2021 beneficiary LE RMD and ask for a distribution of that amount. There is no need to even refer to that distribution as an RMD. Barring a highly unusual IRS ruling on this question, you really do not have a problem until you approach year 10 where they might press for a lump sum distribution. Even then I do not believe they can force out that distribution unless their agreement so indicates. But you might press them for documentation that supports their position. Bet they don’t have it, but if they provide anything would appreciate your posting back.
Permalink Submitted by Mike Sage on Thu, 2021-06-03 18:54
Thank you! Will do!