TSP Required Minimum Distributions: When Withdrawals Start and the Penalty for Missing One

The short answer: TSP required minimum distributions are mandatory annual withdrawals that generally begin at age 73 once you are separated from federal service. Your first payment is due by April 1 of the following year, and the IRS excise tax for missing one is now 25%, reduced to 10% if corrected timely.

Key Takeaways

• The starting age for TSP required minimum distributions rose from 72 to 73 under the SECURE 2.0 Act, and is scheduled to rise to 75 beginning in 2033 (Thrift Savings Plan).
• Your first distribution is due by your required beginning date — April 1 of the year after you turn 73 and have left federal service (IRS).
• Roth balances in the TSP are no longer subject to required distributions during your lifetime, effective for tax year 2024 and later (Thrift Savings Plan).
• The penalty for a missed distribution is an excise tax of 25%, dropping to 10% if corrected within two years (IRS).
• The amount is calculated from your prior year-end balance divided by an IRS life-expectancy factor (IRS Uniform Lifetime Table).

For many federal retirees, the Thrift Savings Plan is the largest single piece of their nest egg. At a certain age, the government stops letting that money sit untouched and begins requiring annual withdrawals. Understanding how the rules work may help you avoid an unwelcome tax surprise. This article walks through the current framework as published by the TSP and the IRS.

What Are TSP Required Minimum Distributions?

TSP required minimum distributions are the minimum amounts you must withdraw from your traditional TSP balance each year once you reach the applicable age. The rule exists because traditional TSP contributions were never taxed going in, so the IRS eventually requires the money to come out and be taxed.

The Thrift Savings Plan applies the same required-distribution framework that governs other workplace retirement plans and traditional IRAs. The key variables are your age, your separation status, and your prior year-end account balance.

At What Age Do TSP Required Minimum Distributions Begin?

Under the SECURE 2.0 Act, the starting age increased from 72 to 73 beginning January 1, 2023, according to the Thrift Savings Plan. The age is scheduled to rise again to 75 starting in 2033.

There is an important exception for people who are still working. The TSP does not require distributions while you remain a federal employee. The clock starts only once you have both reached the applicable age and separated from service. A federal worker who stays on the job past 73 generally does not face required withdrawals until the year they retire.

This separation rule is one reason timing matters. Some federal employees who continue working into their seventies may find that their first required distribution arrives sooner than expected once they finally retire.

When Is the First Distribution Due?

Your required beginning date is April 1 of the year following the year you reach the applicable age and are separated, as the IRS explains. If you turn 73 and are retired in one year, your first distribution is due by April 1 of the next year.

There is a catch worth noting. If you wait until that April 1 deadline for your first distribution, your second one is still due by December 31 of the same year. That means two taxable distributions could land in a single tax year, which may push some retirees into a higher bracket. Many retirees take the first distribution in the year they turn 73 instead, to spread the income.

How Do Roth Balances Affect the Calculation?

This is one of the biggest recent changes. Under SECURE 2.0, Roth balances in the TSP are no longer subject to required distributions before the participant’s death, effective for tax year 2024 and later. The TSP confirms that the required-distribution calculation now includes only your traditional balance.

For retirees with a mix of traditional and Roth money, this distinction can be meaningful. Only traditional distributions count toward satisfying the requirement, and only the traditional balance is used in the math.

How Is the Distribution Amount Calculated?

The formula is straightforward. The TSP takes your account balance as of December 31 of the prior year and divides it by a life-expectancy factor from the IRS Uniform Lifetime Table. The result is the minimum you must withdraw that year.

You are always free to withdraw more than the minimum. The required amount is a floor, not a ceiling. The TSP typically calculates and disburses the required amount automatically if you have not already withdrawn enough through your own installment payments.

What Happens If You Miss a Distribution?

Missing a required withdrawal used to carry a steep 50% excise tax. SECURE 2.0 reduced that penalty to 25% of the amount you failed to take on time. If you correct the shortfall within a two-year window, the IRS reduces the tax further to 10%. While the penalty is lower than it once was, it remains significant enough that staying on schedule is worthwhile.

How Do TSP Required Minimum Distributions Fit Your Broader Plan?

Distributions rarely exist in isolation. They interact with your Social Security claiming decision, your tax bracket, and any installment payments you have already set up. Some retirees coordinate withdrawals with other income sources to manage their taxable income each year.

Beneficiary planning also matters. If you have named heirs, the rules that apply to an inherited TSP account differ for spouses versus non-spouses, and a spouse beneficiary’s account may be treated differently for distribution purposes. Retirees building a withdrawal strategy sometimes also revisit their late-career contribution choices as part of the same review.

Frequently Asked Questions

Do I have to take a TSP distribution if I am still working at 73?
No. The TSP does not require distributions while you remain a federal employee. They begin in the year you are both at the applicable age and separated from service.

Does the Roth portion of my TSP require a distribution?
Not during your lifetime. Effective for tax year 2024 and later, Roth balances are excluded from the lifetime required-distribution rules.

What is the penalty if I forget?
The IRS imposes a 25% excise tax on the amount not taken on time, reduced to 10% if you correct it within two years.

When exactly is my first distribution due?
By April 1 of the year after you turn 73 and are separated. This date is your required beginning date.

Can I take more than the minimum?
Yes. The required amount is a minimum. You may withdraw more, though additional traditional withdrawals are taxable.

Will the starting age change again?
Yes. Under current law, the starting age is scheduled to rise from 73 to 75 beginning in 2033.

Learn the Rules Before They Apply to You

Required distributions are one of many moving parts in a federal retirement income plan. Fed Pilot offers free educational workshops where federal employees can learn how TSP rules, pension income, and Social Security fit together. Register for a free Fed Pilot workshop to build your understanding before retirement decisions arrive.

This article is educational and reflects rules published by the Thrift Savings Plan and IRS as of 2026. Individual circumstances vary.