TSP RMD Deadline Dec 31, 2026: What You Owe and 6 Steps to Take

Last Updated: October 8, 2026 Reading Time: 8 min

If you have left federal service and were born in 1953 or earlier, a 2026 required minimum distribution (RMD) is due from your traditional TSP balance by December 31, 2026, or by April 1, 2027 if 2026 is your first year. For a separated participant whose records are correct, the TSP sends the shortfall itself if you do nothing. Articles that warn you will owe a 25% penalty skip that step. The decisions before December 31 are how much to take, when, with what withholding, and what to do about any IRA the TSP cannot cover.

Who Owes a 2026 TSP RMD

Under 26 U.S.C. § 401(a)(9), the "applicable age" is 73 for anyone who turns 72 after December 31, 2022 and 73 before January 1, 2033, and 75 for anyone who turns 74 after December 31, 2032. In birth years, that is 73 for 1951 through 1959 and 75 for 1960 and later.

For the TSP there is a second condition. Under 5 C.F.R. § 1650.16(a), only a separated participant must receive RMDs. If you are still a federal employee at 73, you owe no TSP RMD while you remain employed. If you leave after reaching the applicable age, your first RMD is for the year you separate and may be paid by April 1 of the next year. In general, your first TSP deadline is April 1 of the year after the later of the year you reach the applicable age or the year you separate.

The still-working exception does not reach IRAs. Under 26 U.S.C. § 401(a)(9)(C)(ii), a traditional IRA, including one you funded by rolling TSP money out, owes RMDs at the applicable age whether or not you are working.

How the TSP Computes the Amount

Under 26 C.F.R. § 1.401(a)(9)-5, the RMD is the account balance on the last valuation date of the prior year divided by the denominator from the IRS Uniform Lifetime Table in § 1.401(a)(9)-9. For 2026 that is your December 31, 2025 balance. The TSP states on its own site that for civilian and uniformed services accounts the calculation includes only your traditional balance, and only distributions from the traditional balance count toward it. Designated Roth accounts have had no lifetime RMD since tax year 2024 under 26 U.S.C. § 402A(d)(5).

FedTools calculation for separated participants: balance divided by the Uniform Lifetime Table denominator at 26 C.F.R. § 1.401(a)(9)-9(c), rounded to the cent. As a share of the balance, that is 3.77% at 73, 4.07% at 75, and 4.55% at 78. If your spouse is your sole beneficiary for the entire year and more than 10 years younger, the tax-law minimum uses the Joint and Last Survivor Table, whose larger factor produces a smaller RMD than the table shows. A qualifying death or divorce during the year has a special rule that can preserve spouse treatment for that year. The TSP says it calculates your RMD with the Uniform Lifetime Table, so its automatic amount can be higher than that tax-law minimum.

One factor error shows up in secondary sources every year: someone who turned 73 in 2025 is 74 in 2026, so their 2026 RMD uses 25.5, not 26.5.

The 6-Step Checklist Before December 31

1. Confirm you are "separated" on the TSP's records and your birth date is right. The TSP's bulletin on RMDs says it computes and sends the amount automatically when it has your correct birth and separation dates. The TSP's bulletin says the automatic payment depends on its having those dates, so check them first.

2. Compute the number. Enter your December 31, 2025 traditional balance and your birth year in the TSP RMD Calculator.

3. Add up what has already gone out this year. Under 26 C.F.R. § 1.401(a)(9)-5(g)(2)(i), amounts distributed during the year generally count, so monthly installments and any partial withdrawal already paid in 2026 reduce what is left to take; the same regulation excludes specified items such as corrective distributions and loans treated as deemed distributions. Per the TSP, only traditional-balance distributions count. A Roth TSP withdrawal does not satisfy it.

4. Decide the amount and timing yourself. If your 2026 distributions fall short, the TSP says "we'll issue a supplemental payment for the remaining amount before the deadline each year." Doing nothing means accepting the TSP's timing and its default withholding. Act by early December and check the TSP's posted processing cutoff rather than relying on the automatic payment. Taking more than the RMD gives no credit toward 2027 under § 1.401(a)(9)-5(a)(6); the only effect is a smaller balance.

5. Set the withholding. The TSP says it is required to withhold part of the taxable portion in most cases and that you can usually request a different percentage, or none, when you submit the request in My Account. Check what will be withheld before the automatic payment picks it for you. The RMD portion of any withdrawal cannot be rolled over to an IRA under 26 U.S.C. § 402(c)(4)(B).

6. Handle every IRA separately. A traditional IRA owes its own RMD under 26 U.S.C. § 401(a)(9)(C)(ii), computed on that account and due December 31, 2026 (April 1, 2027 if 2026 is your first year). The TSP's automatic payment covers only your TSP account.

Born in 1953: The April 1, 2027 Choice

If you were born in 1953 and separated by 2026, 2026 is your first distribution year. Under 26 C.F.R. § 1.401(a)(9)-5(a)(3), the first year's RMD "may be made on or before April 1 of the following calendar year." Every later RMD is due December 31.

Deferring puts two RMDs into tax year 2027: the 2026 amount by April 1 and the 2027 amount by December 31, with the taxable portions of both counted in 2027. For a uniformed services account, IRS Publication 721 says distributions attributable to tax-exempt combat-pay contributions are tax exempt, though earnings on them are taxed. The IRS FAQ uses the same structure for its 2024 example.

Illustration on a $500,000 traditional balance held flat for the year: take the 2026 RMD in 2026 and it is $18,867.92 (÷ 26.5). Defer, and 2027 income carries that $18,867.92 plus a 2027 RMD of about $19,607.84 ($500,000 ÷ 25.5), about $38,475.77 in one year (the two divisions summed before rounding). A payment deferred into 2027 does not reduce the December 31, 2026 balance that sets the 2027 RMD; the second figure assumes that balance is still $500,000. Two RMDs in one year can also push you across an IRMAA threshold two years later; our IRMAA cliff guide covers that side.

What a Missed RMD Costs, and Where It Happens

Because the TSP pays the shortfall itself for a separated participant with correct records, the excise tax applies wherever a shortfall does occur: an IRA, another plan, or a TSP record error. Under 26 U.S.C. § 4974(a), the tax is 25% of the amount by which the RMD exceeds what was distributed. Under 26 U.S.C. § 4974(e), it drops to 10% if, inside the correction window, you both take the missed amount from the same plan and file a return reflecting the tax. The window closes at the earliest of the date the IRS mails a notice of deficiency for the tax, the date the tax is assessed, or the last day of the second taxable year that begins after the end of the year the tax is imposed. For a missed 2026 RMD, that outer limit is December 31, 2028.

FedTools calculation: the balance divided by the age denominator, with the unrounded result multiplied by 25%, or by 10% for a corrected miss, then rounded once to the cent, assuming nothing was distributed. The excise is owed on top of the ordinary income tax due when the money finally comes out. Correcting in time saves 15% of the RMD, $5,660.38 on a $1 million balance at 73.

You report a shortfall on IRS Form 5329, Part IX. The IRS can waive part or all of the tax for reasonable error if you are taking reasonable steps to fix it. In the 2025 instructions, you enter "RC" and the amount of the shortfall you want waived in parentheses on the dotted line next to line 54a or 54b, subtract that amount from the shortfall entered on the line, and attach a short explanation. Use the instructions for the year of the shortfall.

Calculate Your 2026 RMD

Enter your December 31, 2025 traditional TSP balance and your birth year in the TSP RMD Calculator to get the exact amount. Then size the withdrawal's tax bill with the TSP Withdrawal Tax Calculator by entering the withdrawal amount and your filing status.

Frequently Asked Questions

I'm 73 and still a federal employee. Do I owe a 2026 TSP RMD?

No. Under 5 C.F.R. § 1650.16(a), only separated participants must take TSP RMDs. If you leave after reaching 73, your first RMD is for the year you separate and may be paid by April 1 of the next year. A traditional IRA is different: it owes RMDs at 73 whether you are working or not.

What happens if I do nothing before December 31?

For a separated participant whose birth and separation dates are on file, the TSP record keeper automatically distributes the shortfall by the deadline under 5 C.F.R. § 1650.16(c). Doing nothing means you accept the TSP's timing and its default withholding.

Do my monthly installment payments count toward the RMD?

Yes. Under 26 C.F.R. § 1.401(a)(9)-5(g)(2)(i), amounts distributed during the year generally count, including installments and partial withdrawals; the same regulation excludes specified items such as corrective distributions and loans treated as deemed distributions. Per the TSP, only distributions from your traditional balance count.

Does my Roth TSP balance have an RMD?

No. Designated Roth accounts have had no lifetime RMD since tax year 2024 under 26 U.S.C. § 402A(d)(5), and the TSP excludes Roth money from the calculation for civilian and uniformed services accounts.

I was born in 1953. Should I wait until April 1, 2027?

You can, if you separated by 2026. The first year's RMD may be taken as late as April 1 of the following year. Waiting means two RMDs land in 2027, the 2026 amount by April 1 and the 2027 amount by December 31, with the taxable portions of both counted in 2027. On a uniformed services account, the part attributable to tax-exempt combat-zone contributions stays tax-free.

How is my 2026 TSP RMD calculated?

Your December 31, 2025 traditional balance divided by the IRS Uniform Lifetime Table factor: 26.5 at age 73, 25.5 at 74, 24.6 at 75. If your spouse is your sole beneficiary all year and more than 10 years younger, the Joint and Last Survivor Table's larger factor lowers the tax-law minimum, but the TSP's automatic calculation still uses the Uniform Lifetime Table. A qualifying death or divorce during the year has a special rule that can preserve spouse treatment for that year. The TSP RMD Calculator does the math.

What is the penalty for a missed RMD?

A 25% excise tax on the shortfall under 26 U.S.C. § 4974(a). It drops to 10% if you take the missed amount from the same plan and file a return reflecting the tax inside the correction window, and the IRS can waive it for reasonable error. It is reported on Form 5329, Part IX.

Can the IRS waive the penalty?

Yes, for reasonable error when you are taking reasonable steps to fix the shortfall. Follow the Form 5329 instructions for the year of the shortfall: in the 2025 version, enter "RC" and the shortfall you want waived in parentheses next to line 54a or 54b, subtract it from the shortfall on that line, and attach an explanation.

Can I roll my RMD into an IRA?

No. Under 26 U.S.C. § 402(c)(4)(B), the RMD portion of a distribution is not an eligible rollover distribution. Amounts above the RMD may be eligible, subject to other exclusions: the TSP says no part of installments based on life expectancy or expected to last 10 years or more can be rolled over.

Does taking extra this year lower next year's RMD?

Only through the smaller balance. Under 26 C.F.R. § 1.401(a)(9)-5(a)(6), there is no credit in later years for an excess distribution.

Related Resources

• TSP RMD Calculator: Your 2026 amount from your balance and birth year.
• The TSP RMD Tax Problem for High Balances: Bracket stacking, IRMAA, and Roth conversions before RMDs start.
• TSP Withdrawal Guide: Installments, partial withdrawals, and annuities.
• Federal Retiree Tax Deadlines: Every tax date in retirement.
• TSP vs. IRA Rollover Decision: What changes about RMDs when money leaves the TSP.
• TSP Roth In-Plan Conversion Guide: Moving money out of the RMD base.

Sources

• 26 U.S.C. § 401(a)(9), required distributions and the applicable age
• 26 U.S.C. § 402(c)(4), eligible rollover distributions
• 26 U.S.C. § 402A(d)(5), designated Roth accounts
• 26 U.S.C. § 4974, excise tax on accumulations
• 26 C.F.R. § 1.401(a)(9)-5 and § 1.401(a)(9)-9, RMD computation and the Uniform Lifetime Table (eCFR)
• 5 C.F.R. § 1650.16, TSP required minimum distributions (eCFR)
• TSP: Taking money from your account
• TSP bulletin: All about RMDs
• IRS: Retirement plan and IRA RMD FAQs
• IRS: Instructions for Form 5329 (2025)
• TSP: Tax Rules about TSP Payments (tspbk26)
• IRS Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits