TSP Withdrawal Calculator : TSP Annuity and Monthly Payments
One of the options you have, when you use the TSP withdrawal calculator available through the Thrift Savings Plan website, is to better understand what TSP Annuity options are available to you. The option you may pick, a full withdrawal, would be conducted using TSP-70 form, or you may choose a partial TSP withdrawal. The key question that will likely determine your selection is obviously the amount of the monthly payment you are eligible to receive and what income do you need in retirement.
The minimum vested account balance you need is $200, and the amount of the monthly payment must be at least $25. With this lower limit in mind, you can pick a specific dollar amount, or the TSP can calculate your monthly payment for you based on the IRS Life Expectancy Tables. In the latter case, the monthly amount will be recalculated every year based on your age and account balance.
Either way, if you need to find out the amount and duration of monthly payments you can expect from your account, you can make use of the TSP Monthly Payments Calculator.
How to Use the TSP Monthly Calculator
The online TSP calculator can be found on the TSP website under the ’Planning & Tools’ section. Just fill in the total amount you wish to make use of from your TSP account for the monthly payments, the dollar amount you would like to receive each month, and the expected rate of return. The rate in question here is simply the annual rate of returns you get from your TSP fund investments.
Using the data you enter, the TSP calculator will tell you how long (how many months) you will be able to receive payments. You can then adjust the total withdrawal and monthly payment amounts in order to arrive at the right balance of duration and monthly payment amount.
One thing you need to remember – if you have reached age 70 and a half, you have to start taking Required Minimum Distributions (RMDs). In this case, if the monthly payment amount you choose is less than the RMD, a supplementary payment will be added to your monthly payment calculate by TSP payment calculator so that you will be in compliance with the RMD rule.