Published
Oct 6, 2026
Last Updated
Oct 6, 2026
Required Minimum Distributions (RMDs) for Federal Employees: TSP Start Ages, Calculations, and Penalties
Required minimum distributions (RMDs) for federal employees are the annual withdrawals the IRS requires from a traditional TSP account. The TSP, or Thrift Savings Plan, is the federal government's tax-advantaged retirement savings program.
The requirement starts at age 73 for participants born from 1951 to 1959 and at age 75 for participants born in 1960 or later. The TSP requirement generally applies once you've separated from federal service. IRAs and former employer plans follow separate rules.
According to the TSP, it generally processes and sends the required RMD automatically when one is due, based on the information and payment instructions on file. (Updated October 2026.)
You can often plan for RMDs years in advance. A traditional TSP balance that grows for decades can produce a large taxable withdrawal at age 73 or 75.
This guide from Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, covers the start ages, the calculation, the missed-payment penalty, and your planning options. It's written for retirees under FERS, the Federal Employees Retirement System, and CSRS, the Civil Service Retirement System. Use it to begin your TSP withdrawal planning well ahead of RMD age.
What Are Required Minimum Distributions (RMDs) for Federal Employees?
A required minimum distribution is the smallest amount you must withdraw each year from a tax-deferred retirement account. For federal employees, that rule applies to the traditional balance in the TSP.
Congress set the current start ages in the SECURE 2.0 Act of 2022. Check your birth year first. If you were born in 1959, your RMD age is 73, but if you were born in 1960, it's 75.
If you still work for the federal government, your TSP RMD generally doesn't begin until you separate from federal service. This rule doesn't generally postpone RMDs from IRAs or from plans your former employers maintain.
Your RMD equals the prior year-end account balance divided by an IRS life expectancy factor. The withdrawal counts as taxable income.
When Do TSP Owners Have to Start Taking RMDs?
If you've separated from federal service, your RMDs begin in the year you reach age 73 or 75, depending on birth year. The first RMD is generally due by April 1 of the year after the later of two events: reaching that age or separating from federal service.
Every later payment is due by December 31.
The TSP calls that April 1 deadline the required beginning date. The table below assumes you've already separated from federal service and are subject to the TSP RMD requirement.
Your timing depends on both your age and your employment status:
- Already separated: Your RMD follows the age and required beginning date in the table above.
- Still employed by the federal government: The TSP's still-working exception generally postpones TSP RMDs until you separate.
- IRAs and former employer plans: Continued federal employment doesn't delay these RMDs.
If you delay your first RMD to the April 1 deadline, you'll take two payments in one calendar year. Your second RMD is still due by December 31.
That stacking can push your income into a higher tax bracket. Take your first RMD by December 31 of the year you reach RMD age to avoid it.
If you're still working toward retirement eligibility, see the guide to the FERS minimum retirement age.
Which Federal Retirement Accounts Require RMDs?
The traditional TSP and traditional IRAs require RMDs. The Roth TSP, Roth IRAs, and FERS or CSRS annuities don't. Compare the accounts federal retirees most often hold:
OPM, the U.S. Office of Personnel Management, pays FERS and CSRS annuities every month as taxable income. Because that money already reaches you as income, an annuity never triggers an RMD. Only tax-deferred savings accounts require them.
According to the IRS, SECURE 2.0 eliminated RMDs for designated Roth accounts in employer plans beginning in 2024. That change applies to the Roth TSP. Beneficiaries follow different rules, covered later in this guide.
How Does the TSP Calculate Your RMD?
Your TSP RMD equals your account balance on December 31 of the prior year divided by the life expectancy factor for your age. That factor comes from the IRS Uniform Lifetime Table. A higher balance or a lower divisor produces a larger RMD.
According to IRS Publication 590-B, the divisor at age 73 is 26.5, and the divisor at age 75 is 24.6. At age 73, a $500,000 balance divided by 26.5 means you owe about $18,868 for the year.
The table below shows illustrative RMDs on a constant $500,000 balance. Actual RMDs change each year with market returns and withdrawals.
Notice the pattern. The divisor shrinks every year, so the share of your balance you must withdraw keeps rising.
The IRS allows a different table in one case. If your spouse is your sole beneficiary and is more than 10 years younger than you, the IRS Joint Life Expectancy Table applies. It usually produces a smaller RMD.
A larger balance changes the picture quickly. Using the same IRS divisors, a $1,000,000 traditional TSP balance produces an RMD of $37,736 at age 73 and $40,650 at age 75 if the balance stays the same.
That income stacks on top of your FERS annuity and Social Security, and the IRS taxes it as ordinary income.
Any installment payments or partial withdrawals you take from the TSP count toward your RMD for the year.
Automatic TSP RMD Payments: What They Cover
If your installment payments or other withdrawals fall short of the RMD, the TSP sends you the remaining amount. Because that payment depends on the information on file, review your address, bank details, and withdrawal elections in My Account each year.
The TSP process has limits you should know:
- RMD processing covers only your TSP account. According to the TSP, withdrawals from non-TSP accounts can't satisfy your TSP RMD.
- IRA RMDs remain separate. You or your IRA custodian must handle them.
- The RMD amount itself isn't eligible for rollover. According to the IRS, you can roll only amounts above the RMD into an IRA or another plan.
- Withholding choices stay your responsibility. Keep your mailing address, bank information, and tax withholding elections current in your TSP account.
A TSP withdrawal strategy that starts before RMD age lets you choose the timing and size of payments. Otherwise, you're waiting on the automatic RMD.
What Happens If You Miss a TSP RMD?
According to the IRS, a missed or short RMD triggers a 25% excise tax on the amount you failed to withdraw. The IRS reduces the tax to 10% if you correct the shortfall within a correction window.
That window generally ends at the close of the second year after the year of the missed RMD. It ends earlier if the IRS sends a deficiency notice or assesses the tax. Fix any shortfall quickly.
Here's how the penalty works on a $20,000 shortfall:
- The IRS applies the 25% excise tax, which equals $5,000.
- You withdraw the missing $20,000 within the correction window.
- You file IRS Form 5329 with your tax return to report the tax and request the reduced rate.
- The tax falls to 10%, which equals $2,000.
According to the IRS, SECURE 2.0 lowered the excise tax from 50% to 25%. The IRS can also waive the tax when the shortfall resulted from a reasonable error and you're taking steps to correct it. You request that relief on Form 5329.
The TSP's automatic payment lowers your risk of missing an RMD. It only works when your address and account information are current. Read the IRS RMD FAQ for current correction and relief rules.
RMDs for Federal Employees Who Are Still Working
If you reach RMD age while still working for the federal government, you generally don't have to take TSP RMDs until you separate. According to the TSP, the IRS requirement applies once you've left federal service.
If you separate after RMD age, your first RMD is due by April 1 of the year after you separate. Say you turn 73 in 2026 and retire in 2028: your first TSP RMD would be due by April 1, 2029.
The working exception covers only your current federal employer's plan. Traditional IRAs and old employer plans still require RMDs at RMD age, even while you remain employed.
If you're weighing a later retirement date, also review the FERS annuity calculation and the FERS supplement. Each one affects your retirement income.
How RMDs Can Affect Taxes, Medicare, and Social Security
A traditional TSP RMD counts as ordinary taxable income, and it can raise other costs in retirement. Three effects matter most:
- Income tax: According to the TSP, traditional TSP withdrawals are subject to federal income tax.
- Social Security taxation: According to the IRS, higher income can make a larger share of your Social Security benefits taxable.
- Medicare premiums: According to the SSA, the Social Security Administration, higher-income beneficiaries pay an income-related monthly adjustment amount (IRMAA) on Medicare Part B and Part D premiums.
IRMAA uses income reported two years earlier. A large RMD in 2027, for example, could raise your Medicare premiums in 2029.
Premiums for FEHB, the Federal Employees Health Benefits Program, don't depend on income. Medicare Part B premiums do, so a large RMD can raise the cost of keeping both coverages.
Your exact impact depends on your total income, not the RMD alone. For a deeper look at how these programs interact, read about Social Security and FERS and FEHB coverage in retirement.
Four Ways to Plan for TSP RMDs
Model these four options several years before you reach RMD age. The right mix depends on your income and tax bracket.
Convert traditional TSP money to Roth
According to the TSP, participants and spousal beneficiaries have been able to convert traditional TSP money to Roth inside the plan since January 28, 2026. You request the conversion in My Account.
You pay income tax on the converted amount for the year of the conversion. The converted balance no longer produces RMDs.
The years between retirement and RMD age can carry lower taxable income than your working years. That gap creates room to convert at lower tax rates.
According to the TSP, a conversion can't satisfy your RMD amount. If an RMD is due, you generally must satisfy that required distribution before converting additional traditional TSP money to Roth.
Start voluntary withdrawals earlier
Withdrawing from the traditional TSP before RMD age spreads taxable income across more years. A lower balance at RMD age also keeps future RMDs smaller.
At age 73, every $100,000 less in your December 31 balance lowers that year's RMD by about $3,774.
Use qualified charitable distributions through an IRA
A TSP account can't send a qualified charitable distribution (QCD) directly to charity. According to the IRS, an IRA owner age 70½ or older can send a QCD from the IRA.
A QCD can satisfy an IRA RMD, but an IRA withdrawal can't satisfy a separate TSP RMD.
After you transfer eligible TSP funds to a traditional IRA, the IRA may generally qualify for QCD treatment, subject to IRS eligibility requirements and annual limits. You can't roll over the TSP RMD amount itself, so you must take it first.
Coordinate with your pension and Social Security
A FERS or CSRS annuity and Social Security create income that stacks on top of RMDs. Choosing your Social Security claiming age and your TSP withdrawal pattern together can reduce lifetime taxes.
While you're still working, review TSP contribution limits and catch-up rules. Your contributions determine the balance your RMDs will draw from.
Common TSP RMD Mistakes to Avoid
Federal retirees tend to make the same few errors when RMDs begin. Early planning prevents each one.
- Assuming the TSP covers every account: The TSP calculates RMDs only for your TSP balance. Your IRA RMDs remain your responsibility.
- Waiting until April 1 for the first RMD: The delay stacks two RMDs into one tax year.
- Ignoring withholding: If withholding is too low, a large RMD can leave you with a tax bill at filing time.
- Forgetting the Medicare lookback: RMD income can raise your Medicare premiums two years later.
- Starting Roth conversions too late: Conversions work best before RMD age, while your traditional balance is large and your bracket is lower.
TSP RMD Rules for Beneficiaries
Beneficiary RMD rules differ from the rules for account owners. Spouse and non-spouse beneficiaries can face different distribution requirements.
The rules can also depend on whether the participant died before or after the required beginning date. If you inherit a TSP account, confirm the applicable TSP and IRS rules before taking or delaying distributions.
Review survivor benefits for federal retirees, and confirm current rules at tsp.gov before you decide.
Plan Your TSP Withdrawals Before RMDs Begin
RMDs for federal employees apply to the traditional TSP after separation from service and begin at age 73 or 75, depending on birth year. The IRS taxes them as ordinary income.
The TSP generally sends the payment automatically, but you remain responsible for the amount. The IRS charges a 25% excise tax on any shortfall. For additional guidance on TSP retirement strategies, you can also explore our TSP webinars.
The best time to plan is before RMD age, when Roth conversions and early withdrawals are still available. Schedule a consultation with Federal Pension Advisors to model your TSP, your FERS or CSRS annuity, and your Social Security timing together.
Next, work through the federal retirement planning guide to connect your RMD plan to your other retirement decisions.
This article provides general information about federal employee benefits. It does not provide tax, legal, or investment advice. Confirm all figures with OPM, the TSP, the IRS, or a qualified professional. If you would like personalized guidance based on your federal benefits and retirement goals, you can schedule a consultation with a federal retirement specialist.
Frequently Asked Questions About RMDs for Federal Employees
At what age do federal employees have to take RMDs from the TSP?
Federal employees must start TSP RMDs at age 73 if born from 1951 to 1959, or age 75 if born in 1960 or later. The requirement applies after separation from federal service.
The first payment is generally due by April 1 of the year after the later of reaching that age or separating.
Do I have to take RMDs from my TSP if I am still working?
No. If you're still employed by the federal government, you don't have to take TSP RMDs. The requirement begins after you separate from service.
Once you separate at or beyond RMD age, your first RMD is due by April 1 of the following year. Your IRAs don't get the same delay.
How does the TSP calculate my required minimum distribution?
The TSP divides your prior-year December 31 balance by the IRS Uniform Lifetime Table divisor for your age. At age 73, the divisor is 26.5, so a $500,000 balance produces an RMD of about $18,868.
At age 75, the divisor drops to 24.6. That raises the RMD on the same balance to $20,325.
Does the TSP automatically send my RMD?
Generally, yes. According to the TSP, it generally processes and sends the required RMD automatically when one is due, based on the information on file.
The TSP covers only your TSP account. You must handle RMDs from IRAs and other plans separately, because those withdrawals can't satisfy the TSP requirement.
What is the penalty for not taking an RMD from my TSP?
According to the IRS, the penalty is a 25% excise tax on the amount you should have withdrawn. The tax drops to 10% if you withdraw the missing amount within the IRS correction window.
That window generally runs through the end of the second year after the missed year, but it can close earlier. On a $20,000 shortfall, that's the difference between $5,000 and $2,000.
Do Roth TSP accounts have required minimum distributions?
No. Roth TSP owners don't take RMDs during their lifetimes. SECURE 2.0 eliminated RMDs for designated Roth accounts in employer plans beginning in 2024.
Your Roth balance can keep growing without forced withdrawals.
Disclaimer:
This article provides general information about required minimum distributions and federal employee retirement benefits. It is not tax, legal, or investment advice. RMD rules can vary based on your individual circumstances, account type, birth year, employment status, and beneficiary status. Confirm current rules and requirements with the IRS, TSP, OPM, or a qualified tax or financial professional.
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Stuart Hunsicker
Stuart Hunsicker is a retirement planning professional with over two decades of experience in the financial industry. His work focuses on helping federal employees, educators, and families better understand their retirement options and build strategies designed around long-term financial stability.
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