TSP RMD Rules: Thrift Savings Plan Required Minimum Distributions for Federal Retirees

Federal employees accumulate retirement savings in the Thrift Savings Plan alongside a FERS or CSRS pension and, for FERS participants, Social Security. When Required Minimum Distribution age arrives, many retirees are surprised to find that the TSP follows the strict 401(k) rules: RMDs cannot be pooled with IRA distributions, qualified charitable distributions are not available directly from TSP, and the rollover decision involves a genuine tradeoff with the TSP's unique G Fund. For retirees with all three FERS income sources stacking at once, the combined income picture can trigger IRMAA Medicare surcharges that require planning well before age 73.

Is the Thrift Savings Plan subject to RMD rules?

Yes. The TSP is a qualified defined contribution plan under IRC § 401(a), treated for federal tax purposes the same as a private-sector 401(k). Like all employer-sponsored qualified plans, TSP is subject to the Required Minimum Distribution rules under IRC § 401(a)(9).¹

The Federal Retirement Thrift Investment Board (FRTIB) — the independent government agency that administers the TSP — enforces RMD compliance. TSP automatically calculates and notifies participants of their required distribution amount each year. Failing to take the required amount triggers the same 25% IRS excise tax on the shortfall that applies to any other tax-deferred retirement account (10% if corrected within SECURE 2.0's two-year Correction Window).

TSP RMD starting age: same 73/75 rule as 401(k)s

SECURE 2.0 Act § 107 aligned TSP's RMD starting age with all other qualified plans:¹

Separation from federal service — whether at 56 under MRA+30 or at 62 with 20 years — does not start the RMD clock. The clock starts at age 73 (or 75). But the April 1 first-year deadline means two distributions may be owed if you delay: the prior-year RMD by April 1 and the current-year RMD by December 31. See our RMD starting age guide for the double-RMD trap and how it applies to TSP accounts.

How TSP calculates and delivers your RMD

TSP uses the IRS Uniform Lifetime Table (Table III) — the same table used for traditional IRA and private-sector 401(k) RMD calculations. Your TSP RMD equals your December 31 prior-year TSP account balance divided by the applicable divisor for your age.

TSP withdrawal options for satisfying your RMD

TSP participants have four distribution options, which can be combined:

1. Installment payments (monthly, quarterly, or annually). You choose either a fixed dollar amount or a life-expectancy-based amount that TSP recalculates annually. Life-expectancy installments are designed to cover the RMD automatically. Fixed-dollar installments must be set high enough to cover the annual RMD or TSP supplements the balance in December.
2. Single lump-sum withdrawal. Any amount equal to or greater than the RMD satisfies the annual obligation. The RMD portion is the first dollars out and is not rollover-eligible — see the ordering rule in our RMD rollover rules guide.
3. TSP life annuity. TSP can purchase a life annuity using all or part of your balance through the FRTIB-selected annuity provider. Periodic annuity payments satisfy the RMD for the annuitized portion, but the election is irrevocable.
4. Rollover to a traditional IRA. You can roll all or part of your TSP balance to a traditional IRA. The RMD for the distribution year must be satisfied first — the required portion cannot be rolled over. Post-rollover, the balance enters the IRA aggregation pool and is subject to IRA RMD rules going forward.

The most important TSP RMD rule: no pooling with IRA distributions

This is the rule that most often surprises federal retirees. Your TSP balance and your traditional IRA balance are entirely separate RMD pools. You cannot satisfy your TSP RMD by taking a larger distribution from your IRA — even if the dollar amounts match exactly.

This is the same no-aggregation rule that applies to all 401(k) plans. A federal retiree with a TSP account and two old 401(k)s from prior private-sector jobs has three separate RMD obligations — none of which can be satisfied by the others. See our RMD aggregation rules guide for a full account-type breakdown.

The still-working exception: does it apply to federal employees?

The still-working exception allows employees who are still actively working for the plan sponsor — and who own less than 5% of the business — to defer RMDs from the current employer's plan past the normal starting age.

For federal employees, the ownership test is unusual. Federal employees do not own any percentage of the U.S. government — so technically, every still-employed federal worker satisfies the less-than-5% threshold. FERS employees still working at age 73 can defer TSP RMDs until April 1 of the year after they separate from service.¹

In practice, this rarely matters: the vast majority of FERS retirees separate before age 73. For those who do work past 73 — federal law enforcement officers under special retirement provisions, for instance — the still-working exception is worth confirming with FRTIB and a tax advisor.

QCDs are not available directly from TSP

This is the most consequential limitation for federal retirees with charitable intentions or IRMAA exposure. Qualified Charitable Distributions are available only from individual retirement arrangements under IRC § 408(d)(8). Employer-sponsored plans, including TSP, are not eligible.²

A federal retiree with $1.2M in TSP who wants to use QCDs to exclude income from MAGI — and avoid an IRMAA Medicare surcharge — cannot do so directly from TSP. Options:

1. Roll TSP to a traditional IRA before age 70½. Once in an IRA, QCDs become available at 70½. The rollover itself is not a QCD — but the post-rollover IRA balance supports QCDs going forward.
2. Roll TSP to IRA during the pre-RMD window (ages 60–72). This unlocks both QCDs and the Roth conversion opportunity simultaneously. See our QCD strategy guide and Roth conversion guide for how to sequence these in the pre-RMD window.
3. Give from TSP distributions via cash donation. Take the TSP RMD as ordinary income, then donate cash to charity. Deductible only if you itemize — and with the 2026 standard deduction at $30,000 (MFJ) and $17,600 (single, age 65+), most retirees do not.³

In 2026, QCDs allow up to $111,000 per person to be donated directly from an IRA to a qualified charity, excluded entirely from MAGI. For federal retirees with pension income already flooring taxable income and TSP RMDs pushing them toward an IRMAA cliff, rolling TSP to IRA to access QCDs is often the most valuable single planning move available. See our IRMAA planning guide for the 2026 tier table and the cliff mechanics.

Roth TSP: no lifetime RMDs

SECURE 2.0 Act § 325 eliminated lifetime RMDs for Roth accounts in employer-sponsored plans beginning January 1, 2024.⁴ The Roth balance in your TSP account is no longer subject to any lifetime RMD requirement.

This change applies to the current account owner — not to heirs. Inherited Roth TSP accounts are still subject to the 10-year rule for non-spouse beneficiaries (SECURE Act). The lifetime exemption only protects the original participant.

Federal employees who were previously taking Roth TSP RMDs should confirm with TSP that their Roth balance is correctly excluded from the annual RMD calculation.

The FERS income stack: pension + TSP + Social Security

FERS retirees face a uniquely layered income picture. Unlike most private-sector retirees who rely on a DC plan and Social Security, FERS provides all three:

• FERS pension (defined benefit). Monthly annuity payments that satisfy the pension plan's own RMD automatically — but cannot offset TSP or IRA RMDs. The pension floors taxable income from retirement day one.
• TSP (defined contribution). A separate RMD pool. The RMD is calculated independently from any IRA and any former-employer 401(k).
• Social Security. Not an RMD, but up to 85% of benefits become taxable as combined income rises — adding to MAGI and compounding the IRMAA exposure from the pension and TSP RMD stack.

For FERS retirees who separate from service at 56–62 and have 10–17 years before TSP RMD age, this income-free window before RMDs begin is the most valuable planning opportunity available. Pension income floors taxable income but rarely tops out the 22% or 24% federal bracket. Annual Roth conversions during this window directly reduce the TSP balance — and thus the future RMD — at 73. See our Roth conversion sizing calculator for bracket-filling math that accounts for fixed pension income.

TSP-to-IRA rollover: when it makes sense

Rolling your TSP to a traditional IRA is irreversible and has permanent RMD consequences. It is not automatically right or wrong:

The G Fund is TSP's most compelling retention argument. It earns the weighted average yield of all outstanding Treasury notes and bonds with four or more years to maturity — with no credit risk and no duration risk (the principal never declines as rates rise). No private brokerage product exactly replicates this. Federal retirees who use the G Fund as a stable-value anchor in their allocation should weigh whether a money market fund or short-duration Treasury ETF can reasonably substitute before rolling.

The QCD and Roth conversion arguments favor rolling for retirees with $1M+ in TSP who have charitable intent or face a genuine IRMAA cliff. A retiree whose TSP balance is modest relative to existing IRA holdings — and whose TSP RMD alone does not cross an IRMAA tier — often does better staying in TSP to preserve G Fund access and low costs.

Inherited TSP: what happens when the account owner dies

TSP's inherited account rules differ meaningfully from private-sector 401(k)s and IRAs:

• Surviving spouse. A surviving spouse beneficiary can leave funds in TSP (in a "beneficiary participant account" under TSP rules), roll to their own TSP account or traditional IRA, or roll to an inherited IRA. Rolling to their own account treats it as their own — the spouse's own RMD age applies and full deferral rights resume.
• Non-spouse beneficiaries. Non-spouse beneficiaries cannot maintain an inherited TSP account. TSP transfers the balance to an inherited IRA at a designated custodian. Once in the inherited IRA, SECURE Act rules apply: the 10-year rule for most adult non-spouse beneficiaries, with annual RMD requirements under T.D. 10001 if the TSP participant had already passed their Required Beginning Date. See our IRA beneficiary designation guide for inherited IRA rules.
• No 10-year hold within TSP. TSP does not have a mechanism to hold inherited balances for non-spouses over a 10-year period. The transfer to an inherited IRA occurs promptly after the participant's death.

Common mistakes federal retirees make with TSP RMDs

1. Assuming the FERS pension offsets the TSP RMD. It does not. Pension payments satisfy the pension plan's own RMD obligation only. TSP RMD is a separate calculation and a separate obligation. See our pension RMD rules guide for the complete separation.
2. Confusing separation from service with the RMD trigger. Retiring at 58 does not start a 15-year RMD countdown. The RMD clock starts at age 73 (or 75). But the April 1 first-year rule means the first year's RMD can double up if delayed.
3. Trying to make a QCD directly from TSP. TSP does not support QCDs. The charitable payment must come from a traditional IRA. If most of your retirement assets are in TSP and QCDs are important to your tax strategy, a partial rollover to an IRA before age 70½ is the enabling move.
4. Rolling TSP to IRA after 73 without satisfying the TSP RMD first. The RMD amount for the distribution year must be taken before any rollover is processed. The RMD-eligible portion cannot be included in a rollover — only amounts above the RMD are rollover-eligible. Rolling the full balance without first taking the RMD is a prohibited transaction.
5. Missing the FERS-to-73 Roth conversion window. FERS retirees who separate from service at 57–62 have up to 10–16 years before TSP RMD age begins. Pension income floors taxable income, but the 22% and 24% brackets usually have substantial headroom. Annual Roth conversions during this window permanently reduce the TSP balance that will generate mandatory RMDs at 73 — the most powerful IRMAA mitigation tool available.

Sources

1. TSP — Living in Retirement (tsp.gov). TSP is a qualified defined contribution plan under IRC § 401(a), subject to RMD rules under IRC § 401(a)(9). SECURE 2.0 Act § 107: RMD starting age 73 for born 1951–1959, age 75 for born 1960+. TSP tracks and notifies participants of their annual RMD amount; installment payment shortfalls are distributed automatically in December. Still-working exception: FERS employees still working for a federal agency and not yet separated may defer TSP distributions past RMD age. 2026 rules verified.
2. IRS — Retirement Plan and IRA RMD FAQs. QCDs under IRC § 408(d)(8) are limited to individual retirement arrangements — traditional IRAs, SEP-IRAs, and SIMPLE IRAs. Employer-sponsored plans including TSP, 401(k)s, 403(b)s, and defined benefit pensions are not QCD-eligible. To access QCDs from TSP assets, the balance must first be rolled to a traditional IRA. 2026 QCD limit: $111,000 per person (indexed for inflation).
3. IRS Revenue Procedure 2025-32 — 2026 Tax Rate Tables and Thresholds. 2026 standard deduction: $30,000 MFJ; $15,000 single; $17,600 single age 65+; $18,600 MFJ each spouse 65+. 2026 22% bracket: MFJ $94,301–$201,050; single $47,151–$100,525. 2026 24% bracket: MFJ $201,051–$383,900; single $100,526–$191,950.
4. IRS — SECURE 2.0 Act Changes Affecting Required Minimum Distributions. SECURE 2.0 Act § 325: effective January 1, 2024, designated Roth accounts in employer-sponsored plans — including Roth TSP, Roth 401(k), Roth 403(b), and Roth 457(b) — are no longer subject to required minimum distributions during the owner's lifetime. The exemption applies to the original account owner only; inherited Roth accounts in employer plans remain subject to the 10-year rule for non-spouse beneficiaries.

TSP RMD rules verified against IRS guidance and FRTIB publications, May 2026. TSP plan rules, withdrawal options, and distribution procedures are subject to change by the Federal Retirement Thrift Investment Board — confirm current rules at tsp.gov before making distribution elections. IRMAA thresholds verified against CMS 2026 Medicare Parts B & D premium data.