Do withdrawals from my TDA account count toward my RMD for the year?
In general, yes. Any TDA withdrawals you receive (and do not roll over to a successor plan) count toward your required distribution for the year. But it also depends on your RMD election.
If you file an RMD election and elect to receive payment of your RMD, you will receive the full amount of your RMD even if you have received separate TDA withdrawals during the year.
If you do not file an RMD election, you will receive a payment (generally in October) to meet the IRS requirements. That payment amount would be offset by the amount of any withdrawals you received.
Here’s an example:
Angela’s RMD for the year is $19,000. She makes a direct withdrawal of $10,000 in May. If she files an RMD election and requests to receive an RMD payment, she will receive the full RMD amount ($19,000) in whatever month she chooses.
If Angela does not file an RMD election, TRS will consider any withdrawals she received earlier in the year before paying the RMD balance. Angela will receive a payment of $9,000 at the end of October, fulfilling the IRS’ distribution requirement for the year.