TSP Required Minimum Distributions: What Every Federal Retiree Must Know About RMDs

Your Thrift Savings Plan account has grown over a career of contributions and compounding growth. Now the IRS wants its share — on a schedule you don’t get to choose. Required Minimum Distributions (RMDs) are mandatory withdrawals that every TSP account holder must take starting at age 73, with significant penalties for missing the deadline.

If you’re approaching retirement or already retired, understanding TSP RMDs is essential for income planning, tax management, and making sure you don’t face a 25% excise tax for failing to comply. Here’s what you need to know.

What Are Required Minimum Distributions?

The IRS created RMDs to ensure that pre-tax retirement savings — including traditional TSP accounts — don’t grow tax-deferred indefinitely. At a certain age, you are required to withdraw a minimum amount from your tax-deferred accounts each year. This forces the recognition of income and the payment of taxes that were deferred during your working years.

The SECURE 2.0 Act, signed into law in 2022, raised the RMD starting age from 72 to 73 (effective for those turning 72 in 2023 or later). A further increase to age 75 is scheduled for 2033. As of 2026, the RMD age is 73.

When Must You Take Your First TSP RMD?

You must take your first RMD by April 1 of the year following the year you turn 73. For example, if you turn 73 in 2026, your first RMD is due by April 1, 2027. However, if you delay to April 1, you’ll have two RMDs in that year — one for the prior year and one for the current year — which can create a larger-than-expected tax burden. After the first year, subsequent RMDs are due by December 31 each year.

Still Working Exception

There is one important exception for federal employees who are still working: if you are still employed by the federal government and contributing to your TSP when you turn 73, you do not need to take RMDs from your TSP account until you separate from service. This exception applies only to your TSP account, not to traditional IRAs or other employer retirement plans from former jobs.

How TSP RMDs Are Calculated

Your annual RMD is calculated by dividing your TSP account balance (as of December 31 of the prior year) by a life expectancy factor from the IRS Uniform Lifetime Table. The TSP automatically calculates your RMD each year and will notify you of the required amount.

As a simplified example: if your TSP balance was $400,000 on December 31 of the prior year and your IRS life expectancy factor is 26.5 (as applies to someone age 73 under the 2022 IRS tables), your RMD would be approximately $15,094.

The life expectancy factor decreases each year, meaning a larger percentage of your balance is required to be withdrawn as you age. The TSP provides an online RMD calculator at TSP.gov to help you project future RMDs.

How the TSP Handles RMDs

The TSP will automatically calculate your RMD amount each year. If you have established a regular installment payment from the TSP, the TSP will compare your scheduled annual installment total to the RMD amount and top it up if your installments fall short. If you have not established installment payments, you must request your RMD withdrawal separately or set up installment payments to satisfy it.

Critically, the TSP does not automatically withhold the minimum unless you’ve taken action to ensure the distribution happens. Federal employees who are unaware of the rules — or who delay setting up withdrawals — can find themselves in penalty territory.

Penalty for Missed RMDs

The penalty for missing an RMD is steep. The IRS charges a 25% excise tax on the amount you should have withdrawn but didn’t. This can be reduced to 10% if you correct the missed distribution within two years. For a $15,000 RMD, that’s a potential $3,750 penalty — on top of the regular income tax you’ll owe on the distribution. There’s no reason to risk this given how easy it is to set up automatic TSP distributions.

Roth TSP and RMDs

A significant benefit of the Roth TSP is that, beginning in 2024 (under SECURE 2.0 provisions), Roth TSP accounts are no longer subject to RMDs during the account owner’s lifetime. This aligns Roth TSP treatment with Roth IRA treatment and is a major advantage for tax planning.

If you have Roth TSP contributions mixed with traditional TSP contributions, the TSP holds them in separate balance buckets. Your RMD is calculated based only on the traditional (pre-tax) portion. Understanding your Roth vs. traditional TSP balance is an important part of RMD planning. For a deeper look at Roth vs. traditional TSP considerations, see: Roth TSP vs. Traditional TSP: What Federal Employees Need to Know in 2026

RMDs and Your Overall Tax Picture

RMDs add taxable income in your retirement years — often on top of your FERS pension, Social Security, and any other income sources. Without planning, RMDs can push you into a higher tax bracket, trigger higher Medicare premiums (IRMAA surcharges), and increase the taxable portion of your Social Security benefits.

For a full picture of how your federal retirement income is taxed, see: Federal Retirement Tax Planning: How Your FERS Pension, TSP, and Social Security Are Taxed

Strategies to Manage RMD Tax Impact

Several strategies can help manage the tax burden of RMDs:

• Roth conversions before 73: Converting traditional TSP or IRA balances to Roth accounts before RMDs begin reduces your future taxable RMD amount. Conversions are taxable events, so timing matters — ideally done in lower-income years between retirement and Social Security/RMD onset.
• Qualified Charitable Distributions (QCDs): At age 70½ and older, you can make a QCD directly from your IRA to a qualified charity — up to $105,000 per year in 2026 (indexed annually) — and exclude it from income while satisfying the RMD. Note: The TSP does not currently support QCDs directly; you’d need to roll TSP funds to an IRA first.
• Income smoothing: Taking larger TSP distributions in lower-income years before 73 can reduce the balance subject to RMDs, spreading the tax burden more evenly over time.
• Coordinating with Social Security timing: If you delay Social Security while taking TSP distributions between retirement and age 70, you can reduce your TSP RMD balance while taking advantage of a larger future Social Security benefit.

TSP Rollover Considerations

Some federal retirees choose to roll their TSP into a traditional IRA after retirement. From an RMD standpoint, traditional IRA RMDs function similarly to TSP RMDs — the same age rules apply (73 as of 2026). One difference: if you have multiple IRAs, you can calculate the combined RMD and take it entirely from one IRA rather than each one separately. TSP funds must satisfy their own RMD before a rollover or after, so timing a rollover requires care.

See our comprehensive guide for all the options when withdrawing from your TSP: TSP Withdrawal Options in Retirement: A Complete Guide for Federal Employees

Action Steps for Federal Retirees Approaching 73

If you’re within five years of age 73, now is the time to plan:

1. Log into your TSP account at TSP.gov and review your current balance and traditional/Roth split.
2. Use the TSP’s RMD calculator to project your first and subsequent RMD amounts.
3. Determine whether Roth conversions between now and age 73 make sense given your income situation.
4. Set up installment payments or a withdrawal plan that satisfies your annual RMD requirement.
5. Consult a tax professional familiar with federal retirement benefits to model the combined tax impact of your pension, TSP RMDs, and Social Security.

The Bottom Line

TSP Required Minimum Distributions are a mandatory feature of traditional TSP accounts that every federal retiree will eventually face. The rules have changed in recent years — notably with the RMD age now set at 73 and Roth TSP accounts exempt from lifetime RMDs — and will change again in 2033. Understanding the rules now gives you the runway to plan effectively and minimize unnecessary tax exposure.

Want to talk through how RMDs fit into your overall retirement income plan? Register for a free Fed Pilot retirement workshop at fedpilot.com/#register. Our educators break down TSP strategy, tax planning, and federal retirement benefits in plain English — completely free for federal employees and their families.