Key Takeaways:
- TSP RMDs generally begin at age 73 in 2026, aligning with recent federal policy updates.
- RMD calculations use IRS life expectancy tables and account balances to determine annual withdrawal amounts.
It’s a common misunderstanding that your Thrift Savings Plan (TSP) account can remain untouched indefinitely after you retire. In reality, federal law requires you to begin taking Required Minimum Distributions (RMDs) from your TSP at a certain age, regardless of whether you need the income. Understanding the specific age rules and calculation process for RMDs in 2026 is essential for compliance and retirement planning.
What Are TSP RMDs?
Definition of Required Minimum Distributions
A Required Minimum Distribution (RMD) is the minimum annual amount you must withdraw from specific retirement accounts, including traditional TSP, after you reach a federally mandated age. The purpose is to ensure retirement savings are eventually taxed, as most contributions and growth were previously tax-deferred.
Why RMDs Exist for TSP Accounts
RMD rules exist to gradually move untaxed funds out of retirement accounts and into taxable status. Congress established these requirements to prevent retirement accounts from doubling as long-term tax shelters. For federal employees and retirees, following RMD guidelines for your TSP is a legal obligation and helps maintain the integrity of the U.S. retirement system.
When Do TSP RMDs Start in 2026?
Current TSP RMD Age Requirement
As of 2026, the required beginning age for TSP RMDs is 73. This follows recent legislation that increased the age from 72 to 73, and no additional changes are scheduled for 2026 under current law. The rule applies to both former and current federal employees, though with some exceptions for those still working (discussed below).
How the Starting Age Is Determined
You must take your first TSP RMD by April 1 of the year following the calendar year in which you either reach age 73 or separate from federal service, whichever comes later. For many, this means RMDs begin the year after turning 73. However, if you continue federal employment past age 73, your RMD requirement is generally delayed until the year you retire.
How Are TSP RMDs Calculated?
Annual Calculation Process
Each year, the TSP calculates your RMD based on your account balance as of December 31 of the previous year and your age. To find the amount, your December 31 balance is divided by a life expectancy factor provided in official IRS tables.
Official IRS Life Expectancy Tables
The IRS publishes Uniform Lifetime Tables used to determine your RMD life expectancy factor. TSP follows these tables to ensure your withdrawal calculation aligns with federal requirements. If you have a spouse more than ten years younger, a different IRS table (the Joint Life and Last Survivor Table) may apply, but this is less common. The finalized RMD amount is distributed to you annually to ensure compliance.
Can You Delay TSP RMDs After Retirement?
Rules for Separated Federal Employees
If you have separated from federal service, you generally must begin RMDs for the calendar year you turn 73. The first RMD can be delayed until April 1 of the following year; after that, each subsequent RMD must be taken by December 31 each year.
Exceptions for Current Employees
If you remain actively employed by the federal government—even after reaching age 73—TSP RMDs are not required until you retire. This “still working” exception only applies to your current TSP account and not to other retirement savings, such as IRAs or previous employer plans. Once you separate from federal service, standard RMD timing resumes.
What If a TSP RMD Is Missed?
IRS Consequences and Corrections
Failing to take a required TSP RMD by the annual deadline may result in an IRS excise tax on the missed amount. For 2026, the penalty is 25% of the RMD not taken, though the IRS may reduce it to 10% if you correct the mistake within two years and file the necessary forms.
Reporting Requirements
Missed RMDs must be reported to the IRS, typically using Form 5329, which discloses the shortfall and, where applicable, requests a waiver of the penalty. The TSP does not automatically correct missed distributions, so it’s important to monitor deadlines. Keeping records and consulting official IRS resources can help address any issues that arise.
Are TSP RMD Rules Changing in 2026?
Recent Federal Policy Updates
The TSP RMD age increased to 73 in recent years, aligning with changes to federal law. As of 2026, there are no announced alterations to the starting age or calculation method. It’s always possible that future federal legislation could change the requirements, but as of now, the age 73 start remains in effect.
Comparing TSP and IRA RMD Ages
TSP and IRA RMD rules are largely similar due to their alignment with Internal Revenue Code Section 401(a)(9). Both require distributions by age 73 in 2026. However, the “still working” exception applies only to the TSP, not to traditional IRAs. Roth TSP accounts (post-2023 contributions) are now exempt from RMDs in line with Roth IRA rules, a change that adds flexibility for those with both account types.
Frequently Asked Questions About TSP RMDs
Who Is Subject to RMDs?
All traditional TSP participants—retired or actively employed—must eventually take RMDs. Actively employed federal workers may defer RMDs until separation. Beneficiaries with inherited TSP accounts are also subject to special RMD rules that are beyond this overview.
Are Roth TSP Accounts Included?
Roth TSP accounts funded with contributions after 2023 are not subject to RMDs, aligning with updated federal law. Prior Roth TSP balances, if any, may still be subject to RMDs under older rules; check with official TSP communications for your specific account history.
Where to Find Official TSP RMD Guidance
The most reliable information about TSP RMDs is available on the official TSP website and in IRS publications such as IRS Publication 590-B. Periodic updates to federal retirement law are also published on agency websites and through federal communications channels.
