We’ve read articles about RMDs (required minimum distributions), but we haven’t heard much about a similar acronym, RBD (required beginning date). Interestingly enough, RBDs apply to RMDs. In fact, a RBD is the first date you are required to take an RMD.
The required beginning date for required minimum distributions from traditional IRAs (Individual Retirement Arrangements) is April 1st of the year after the year in which the account holder turned the age of 72. So, if I turned 72 this year, I would have to take my RMD no later than April 1, 2023.
When it comes to Roth IRAs, there is no RBD because minimum distributions are not required in Roth IRAs.
Because minimum distributions are also required in employer sponsored plans, there is a required beginning date for TSP distributions. Both the traditional TSP and the Roth TSP require that you take minimum distributions. If you are separated from your federal job (by retirement or otherwise), the RMD and RBD rules that apply to traditional IRAs also apply to both your traditional and Roth TSP balances.
If, on the other hand, you are not yet separated from your federal job when you attain the age of 72, you do not have to take a required minimum distribution from your TSP. In this instance, your RBD would be April 1 of the year following the year in which you separated from federal service. So, if I were over the age of 72 and retired on December 31, 2022, my RBD would be April 1, 2023. Please click HERE to read more.