Key Takeaways:

• TSP required minimum distribution rules now take effect at age 73, with new legislative updates in place as of 2026.
• Missing a TSP RMD can result in IRS penalties, but exceptions apply for active federal employees and specific situations.

TSP RMD Age Rules: What Federal Employees Need to Know

Recent federal legislation and Thrift Savings Plan (TSP) updates have shifted the rules that dictate when federal employees must begin required minimum distributions (RMDs) from their retirement savings. If you are a current or former federal employee, understanding the timelines, calculation methods, penalties, and exceptions for TSP RMDs is essential for an informed retirement journey. This guide reflects the most current TSP and federal RMD regulations for 2026 and is designed to help you stay compliant and confident in your planning.

What Are TSP RMD Age Rules?

Definition of RMDs

A required minimum distribution (RMD) is the minimum amount you must withdraw annually from your qualified retirement accounts, including the TSP, once you reach a certain age. The purpose of RMDs is to ensure that retirement funds eventually become taxable as ordinary income, aligning with federal tax law requirements.

Current rules for TSP participants

For TSP account holders, RMDs follow federal rules established by the IRS but are administered directly by the TSP. As of 2026, RMDs generally begin in the year you turn 73. This reflects recent changes in federal law, aligning TSP distribution rules with broader retirement account requirements. Both current and separated federal employees must be aware of these rules to avoid penalties and ensure compliance.

When Must You Take TSP RMDs?

Required beginning date

Your required beginning date (RBD) for the first TSP RMD is April 1 of the year following the calendar year in which you turn age 73 or, if you are still employed by the federal government, April 1 of the year after you retire (whichever is later). This means if you reach age 73 but have not yet separated from federal service, you can often delay RMDs until after you retire.

Timeline for first and subsequent RMDs

The initial RMD must be taken by April 1 after the year you reach the required age or retire. All subsequent RMDs are due by December 31 of each year. If you delay your first RMD until April 1, you will need to take two RMDs in that first year: one for the year you turned 73, and the second for the following year by December 31.

Has the TSP RMD Age Changed Recently?

Recent federal legislative updates

Federal law has increased the starting age for RMDs in recent years. The SECURE Act of 2019 raised the threshold from 70½ to 72, and the SECURE 2.0 Act increased it further to age 73 for individuals who reach age 72 after January 1, 2023. No new changes are scheduled for 2026; the age remains 73 unless Congress issues further updates.

TSP guidance as of 2026

The TSP has fully implemented these federal updates. All account holders turning 73 in 2026 must ensure that they begin RMDs, unless an exception applies, such as the “still working” provision described below. TSP participants should refer to official TSP materials for any updates.

How Are TSP RMDs Calculated?

IRS rules for calculation

The IRS uses your age and prior year-end TSP account balance to determine the RMD amount. The IRS Uniform Lifetime Table is referenced for most account holders, providing a life expectancy factor for each age. Your required distribution is calculated by dividing your December 31 TSP balance by this factor.

Factors affecting annual amount

Several items impact your annual TSP RMD amount:

• Your TSP account balance as of the end of the previous year
• Your age on that year’s IRS table
• Number of TSP accounts or beneficiaries (for inherited TSPs, different calculation tables may apply). TSP communicates your annual RMD requirement directly if you have a separated account.

What Happens If You Miss a TSP RMD?

IRS penalties and reporting

Failure to withdraw at least the RMD amount by the deadline can result in a significant excise tax—typically 25% of the amount that should have been withdrawn, as provided under current IRS rules. The penalty may be reduced to 10% if the error is corrected within two years.

Correcting a missed RMD

If you miss an RMD, you are required to report this on IRS Form 5329 and contact the TSP for guidance on distribution. The IRS may waive part or all of the penalty if you can demonstrate that the oversight was due to reasonable error and you have taken steps to remedy it.

Are There Exceptions to TSP RMD Rules?

Still working exception for federal employees

If you are still employed by the federal government during or after the year you turn 73, you are not required to begin TSP RMDs until you separate from service. This “still working” exception is only applicable while you remain an active federal employee and does not apply to IRAs.

Other permitted exceptions

Special rules may apply to beneficiaries, inherited TSP accounts, and individuals who participated in combat zone deployments (for certain reporting issues). Always consult the latest official guidance from TSP and the IRS for cases involving inherited accounts and nonstandard circumstances.

How Do TSP RMDs Differ from IRA RMDs?

Key similarities and differences

TSP and traditional IRAs both require RMDs, but there are important distinctions:

• The “still working” exception is unique to TSP and employer retirement plans; IRAs do not offer this.
• Withdrawal options and deadlines align but are administered through different channels.
• Tax treatment of RMDs is similar for both account types (Roth TSP RMDs follow separate IRS rules).

Unique considerations for federal employees

Because most federal employees have both TSP and IRA accounts, it is important to manage RMDs for each separately. The calculation method is similar, but you cannot aggregate distributions between TSP and other retirement accounts.

Can You Delay TSP RMDs after Retirement?

Rules for deferral

You may delay the initial RMD until April 1 of the year following your retirement if you were still working after reaching age 73. After that date, no further deferrals are allowed—annual RMDs must be taken by December 31.

Important deadlines and considerations

Delaying the first RMD means that two RMDs will be required in the year you retire (one by April 1, one by December 31). This could affect your taxable income for that year. It’s important to review how a delayed RMD may interact with your other sources of income.

What Should Federal Employees Consider?

Planning ahead for TSP withdrawals

Understanding TSP RMD rules allows you to plan your withdrawals to minimize surprises and avoid penalties. Consider your projected retirement date, account balance, and expected income needs when reviewing the timing of your first and subsequent RMDs.

Coordinating RMDs with other retirement income

RMDs from the TSP may need to be considered together with required withdrawals from IRAs, Social Security benefits, or other retirement income to help keep your tax obligations clear and manageable. Since each account type has its own withdrawal rule, careful coordination can help keep you on track with federal regulations.

Frequently Asked Questions about TSP RMDs

Can RMDs be taken automatically?

Yes, the TSP offers automatic RMD processing for separated participants, ensuring that the minimum withdrawal is made each year as required by law.

What if your TSP balance is low?

If your TSP balance is below the RMD amount, your entire remaining account balance will be distributed to satisfy the requirement.

How are TSP RMDs taxed?

TSP RMDs are subject to federal income tax in the year they are distributed, except for any portion attributable to Roth TSP contributions (if eligible), which may be tax-free if IRS criteria are met.