Basics: required Minimum distributions

Section 1: Regulatory Context

RMDs are mandatory annual withdrawals required by Internal Revenue Code Section 401(a)(9) once a participant reaches a specific age and is separated from federal service. The SECURE 2.0 Act of 2022 progressively increased the “Required Beginning Date” (RBD) age. For participants born between 1951 and 1959, the RMD age is 73; for those born in 1960 or later, it will increase to 75 starting in 2033. Failure to withdraw the required amount may result in an IRS excise tax of 25% of the shortfall, which may be reduced to 10% if corrected within two years. The Thrift Savings Plan (.gov) +4

Section 2: If/Then Scenarios

If a participant is still actively employed by the federal government, then they are not required to take RMDs from their TSP, regardless of age, until April 1 of the year following their separation.
If a participant has a Roth TSP balance, then as of 2024, that balance is excluded from RMD calculations and is not subject to mandatory lifetime distributions.
If the account is a Spousal Beneficiary Participant Account, then the RMD calculation still includes the entire balance (both Traditional and Roth), and any distribution counts toward the requirement.
If a participant reaches their RMD age in 2026, then they must take their first RMD by April 1, 2027, though doing so will require taking a second RMD for the 2027 tax year by December 31. The Thrift Savings Plan (.gov) +5

Section 3: System Integration

The TSP record keeper calculates RMDs annually based on the account’s prior-year December 31 balance and IRS life expectancy tables. In early January, the TSP sends RMD Calculation Notices to affected separated participants and spousal beneficiaries. If a participant’s total voluntary withdrawals throughout the year do not satisfy the RMD, the system will automatically trigger a supplemental payment in mid-December to meet the legal minimum. These payments are issued pro rata from all available investment funds. The Thrift Savings Plan (.gov) +6

Section 4: 3-Step Action Plan

Monitor Your Secure Mailbox: Review the RMD Notice sent in January via My Account to confirm your specific required amount for the current tax year.
Coordinate Voluntary Withdrawals: If you plan to take Installment Payments or lump sums, ensure they are scheduled to be processed before the mid-December automated RMD deadline to maintain control over your tax withholding.
Update Direct Deposit: Confirm your financial institution information in My Account to ensure any automated supplemental RMD payments are deposited correctly and avoid paper check delays. The Thrift Savings Plan (.gov) +3