What is the difference between the TSP RBD vs TSP RMD?
What is the difference between the TSP RBD vs TSP RMD?
RBD: Required Beginning Date. April 1, the following year after the TSP owner turns 73 (increasing to 75 in 2033 for those born after 1950) and is separated from federal service.
RMD: Required Minimum Distributions which are mandatory distributions from the Traditional TSP accounts for the government to collect taxes. There are no RMDs for ROTH accounts.
RBD is a specific date, while RMD is a specific amount to avoid IRS penalties. In essence, the RBD is the start date for the RMD process, and the RMD is the yearly distribution itself.
For more information visit the official TSP.gov website: https://www.tsp.gov/taking-money-from-your-account/ or sign up for a free consultation with a FERS expert: https://www.thrasherfinancialgroup.com/contact-us-for-complimentary-fers-benefits-analysis