How is an Annuity bought by the U.S. Thrift Savings plan to be handled?

hairy4paws · ‎June 4, 2019

Is the annuity purchased by the TSP still a "defined" plan. How are the questions of minimum distributions to be responded to when the entire TSP account was converted into an annuity with monthly payments.

dmertz · ‎June 4, 2019

Yes, it's still a qualified retirement plan. Since a series of substantially equal periodic payments made for life or for a period of 10 years or more are ineligible for rollover, they are effectively required distributions. If asked, indicate that the entire amount distributed from the annuity is RMD and that the distributions from the annuity are all of the RMD for the annuity.

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dmertz · ‎June 4, 2019

Yes, it's still a qualified retirement plan. Since a series of substantially equal periodic payments made for life or for a period of 10 years or more are ineligible for rollover, they are effectively required distributions. If asked, indicate that the entire amount distributed from the annuity is RMD and that the distributions from the annuity are all of the RMD for the annuity.