TSP Problems galore

General TSP Discussion.

Moderator: Aitrus

Post Reply
whelandw
Posts: 4
Joined: Sun Jan 24, 2010 8:30 pm

TSP Problems galore

Post by whelandw »

First Problem: (Husband began receiving RMD 3 years ago when he reached 72 and no problems until new system was put into action). He is still waiting for the December check to cover the remaining RMD requirement for 2022. We have talked to 6 TSP representatives. The first four representatives we talked in last week of December all said the check should be there tomorrow, call back tomorrow if it doesn't show up. Rep #5 we called after New Years and he said the check was never issued. and put in request to reissue check. Last rep #6 said the order to reissue the payment went through on 18 January 2023, payment would be sent electronically to the bank on record (no check), BUT with the debt ceiling problem we shouldn't be expecting it any time soon. :evil: Hope we are not subject to the 50% penalty for not taking the total amount required for distribution.
Second Problem: Husband received January RMD the other day. TSP withheld 5% for Federal taxes. 5%??? Husband filed single with 0 exemptions PLUS additional $400. Talk about messing up withholding for Federal taxes for 2023. Holy cow what a FUBAR TSP system we have been given.
Think I will seriously think about moving my TSP funds to an IRA before I am requires to start RMD!
Rant over but still mad enough to spit nails! :D

User avatar
Scarfinger
Posts: 746
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP Problems galore

Post by Scarfinger »

Damn that sucks. Your story confirms my intention to move my TSP to fidelity when I retire.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

Bubba
Posts: 294
Joined: Thu Mar 05, 2020 3:40 am

Re: TSP Problems galore

Post by Bubba »

whelandw wrote: Tue Jan 24, 2023 10:52 pm First Problem: (Husband began receiving RMD 3 years ago when he reached 72 and no problems until new system was put into action). He is still waiting for the December check to cover the remaining RMD requirement for 2022. We have talked to 6 TSP representatives. The first four representatives we talked in last week of December all said the check should be there tomorrow, call back tomorrow if it doesn't show up. Rep #5 we called after New Years and he said the check was never issued. and put in request to reissue check. Last rep #6 said the order to reissue the payment went through on 18 January 2023, payment would be sent electronically to the bank on record (no check), BUT with the debt ceiling problem we shouldn't be expecting it any time soon. :evil: Hope we are not subject to the 50% penalty for not taking the total amount required for distribution.
Second Problem: Husband received January RMD the other day. TSP withheld 5% for Federal taxes. 5%??? Husband filed single with 0 exemptions PLUS additional $400. Talk about messing up withholding for Federal taxes for 2023. Holy cow what a FUBAR TSP system we have been given.
Think I will seriously think about moving my TSP funds to an IRA before I am requires to start RMD!
Rant over but still mad enough to spit nails! :D
I'm truly sorry this is happening to you. It seriously bothers me that in the US we always assume companies can do everything better and more efficient than the government. This is an example that's not always true (although in most cases it is, of course). Nonetheless, I hope you guys get some fix out of this.

Personally, I'm also thinking of putting my money into an IRA. If the TSP had never gone to Alight, I might not have gone that direction, but this is one of those moments when the fan's blowing and that pile of warm, brown gooeyness is about to do its job...

User avatar
evilanne
Posts: 2023
Joined: Thu May 14, 2015 6:52 pm

Re: TSP Problems galore

Post by evilanne »

whelandw
I am feeling the same about TSP, I never considered closing my TSP account until this transition but I'm locked in until 59.5 :( You shouldn't be subject to the 50% penalty because according to TSP they sent you the required distribution. Make sure you are using the revised IRS RMD table to calculate amount for 2022 https://www.irs.gov/publications/p590b# ... k100089977. Both contractors made mistakes that may offset each other.

It appears that the new contractor recalculated the RMD amount when they took over using the then current balance divided by the updated age factor which understated the RMD (per a new representative I spoke with this year) The former contractor used the 12/31/2021 balance divided by the old age factor that overstated the RMD for the year. It my case the total payments were within a few hundred dollars of what I calculated that it should have been if they had done it correctly. I have no way of making any adjustment to my Life Expectancy payment so I am considering what I actually got as my RMD.

Happy Trails

Post Reply

Fund Prices2023-01-30

FundPriceDayYTD
G $17.29 0.03% 0.33%
F $18.73 -0.29% 2.87%
C $61.70 -1.29% 4.74%
S $66.60 -1.54% 8.24%
I $36.63 -0.59% 7.93%
L2065 $13.03 -1.07% 6.31%
L2060 $13.04 -1.07% 6.31%
L2055 $13.04 -1.07% 6.31%
L2050 $26.89 -0.90% 5.44%
L2045 $12.36 -0.85% 5.14%
L2040 $45.46 -0.79% 4.82%
L2035 $12.11 -0.72% 4.45%
L2030 $40.67 -0.66% 4.08%
L2025 $11.74 -0.41% 2.77%
Linc $23.29 -0.26% 1.92%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".