RMD Correction

[CHAS25]

I received an RMD calculation from the TSP that is incorrect and Is 10% larger than it should be, as the TSP refuses to use the Joint and Last Survivor Life Expectancy Table when appropriate as required by IRS rules.  I calculated my correct 2025 RMD and will file taxes using Tubo-Tax Deluxe. Is there a way for me to provide documentation of the correct RMD with my return so the IRS has the correct information? 

[Bsch4477]

You can’t attach a statement to your efliled return. You would have to print and mail your return. Or just explain your situation if audited. 

[NCperson]

@CHAS25 can you please be more specific and detailed on why you believe you are right and the TSP administrator is wrong?  what is your current circumstance? Married? widowed? etc. 

when is this joint and survivorship table appropriately used per IRS rules?  can you please explain? 

see this link. I see nothing stating that the Joint and Survivorship table is to be used to determined RMD.  

https://www.tsp.gov/publications/tspbk26.pdf

[Bsch4477]

@NCperson is correct. I found this on the web:

The TSP does not allow for the use of the Joint Life and Last Survivor Expectancy Table in RMD calculations. Participants are required to use the Uniform Lifetime Table, which may not be the most advantageous option for all individuals, particularly those with younger spouses

[dmertz · Accepted solution]

Beginning with 2024 TurboTax, TurboTax requires you to enter the amount of RMD required for the TSP, so, because your spouse is more than 10-years younger and is the sole beneficiary of your TSP, simply enter the correct amount that you determine based on the Joint and Last Survivor Life Expectancy Table, not the amount that the TSP determined using the Uniform Lifetime Table, no explanation required.  Amounts distributed beyond the actual amount required are not RMD and are eligible for rollover.

[CHAS25]

I have corresponded with the TSP in regard to their calculation of my RMD and their policy to exclude the use of the Joint Life and Last Survivor Expectancy Table in RMD calculations. They indicted that they have the "authority to create plan rules that govern payments from the TSP" and that "TSP may pay a monthly payment that exceeds the RMD amount than what is required by the IRC or IRS regulations." They cite the size of the TSP and difficulty in obtaining and verifying the spouse and other beneficiary information necessary to calculate RMDs using the Joint Life and Last Survivor Expectancy Table.  I understand that the TSP can force participants to take distributions that exceed the correct RMD.  I do not believe that the TSP is following 25 CFR Section1.401(c)(2)(i) IRS rules for calculating RMDs for participants who have a sole beneficiary spouse that is 10 years or more younger.  The IRS guidance indicates that  the RMD recipient is ultimately responsible for calculating and withdrawing the correct RMD amount.  I intend to make an indirect rollover to a traditional IRA with the excess RMD distribution amount . 

[Bsch4477]

Remember that you have to do the roll over within 60 days of the distribution. 

[dmertz · Accepted solution]

"I do not believe that the TSP is following 25 CFR Section1.401(c)(2)(i) IRS rules for calculating RMDs for participants who have a sole beneficiary spouse that is 10 years or more younger."

That is true, but nothing in the tax code limits the amount that the TSP can force you to take out.  As Bsch4477 said, you have 60 days to roll over the amount distributed that is in excess of the true RMD amount based on your circumstances.  As I said previously, when TurboTax asks the amount that you were required to take from the TSP, enter no more than the amount that you determined from the Joint and Last Survivor Life Expectancy table so that TurboTax does not block you from reporting the portion rolled over.