U.S. · Thrift Savings Plan

TSP withdrawal calculator.

Enter a balance and a yearly withdrawal to see the tax, whether the 10% early-withdrawal tax applies, what is withheld up front, and how many years the money lasts at a return you choose.

Your numbers

The starting figures are placeholders. Replace each one. Tax rates are your own assumption: use the Federal Income Tax Calculator to find your bracket.

Result

What a TSP withdrawal actually costs

The Thrift Savings Plan is a pre-tax retirement plan, so a traditional-balance withdrawal is ordinary income in the year you take it. This calculator turns that into three numbers: the tax on the withdrawal, the 10% additional tax if it applies, and the cash you keep. It then runs the same withdrawal every year against your balance to show how long the account lasts at the return you assume.

How this is calculated

Income tax. The withdrawal times your federal rate plus your state rate. Both rates are inputs because the real tax depends on your whole return.
The 10% additional tax. The IRS says the additional tax is 10% of the part of a distribution that is includible in income, and that distributions before age 59½ are generally subject to it. One listed exception is a distribution made after you separated from service with your employer after reaching age 55. The tool applies the 10% when you are under 59½, were younger than 55 in the year you left, and did not roll the money over.
Withholding. IRS Topic 413 says taxable eligible rollover distributions from employer plans face mandatory withholding, generally 20%, and that a direct rollover avoids it. The tool shows the 20% and whether you would owe more or get a refund of it at filing.
How long it lasts. Each year the withdrawal comes out, then the remainder grows at your return. The count stops when the balance reaches zero, and the last year is shown as a fraction.

Worked example (hypothetical balance, real rules)

A 57-year-old left federal service at 56 with $600,000 in the TSP and takes $40,000. At 22% federal and 5% state, the tax is $8,800 + $2,000 = $10,800 and the net is $29,200. No 10% tax applies because the separation year was age 56. Paid to the person, $8,000 is withheld, so about $2,800 more is due at filing. At a 5% return a fixed $40,000 a year lasts about 25.7 years.

Change two inputs to see the penalty: a 52-year-old who left service at 52 takes the same $40,000. The 10% tax adds $4,000, taxes total $14,800 and the net falls to $25,200.

The age-55 rule, plainly

The test is your age in the calendar year you separated from service, not your age on the day you withdraw. Leaving in the year you turn 55 or later removes the 10% tax on later withdrawals from that plan; it never removes the income tax. The tool cannot see special categories, such as the public safety exception the IRS describes for governmental plans, so check Topic 558 if you may qualify.

The 2026 contribution limit, for context

For anyone still contributing, IRS Notice 2025-67 raises the 2026 elective-deferral limit for 401(k), 403(b), governmental 457(b) and the Thrift Savings Plan from $23,500 to $24,500. The 403(b) and 457(b) limits calculator and the 401(k) contribution limit calculator cover the catch-ups.

What this does not cover

The TSP's own payment options, minimum amounts and tax-election forms. Read them at tsp.gov before you decide; this tool is arithmetic, not the plan's rulebook.
Roth balances and any split between pre-tax and Roth money; the tool treats the whole withdrawal as pre-tax.
Required minimum distributions, which the IRS says generally start at age 73 (later birth years may start later; see the RMD calculator).
Inflation raises in the withdrawal, sequence-of-returns risk, and the effect of the withdrawal on Social Security taxation or Medicare premiums.

Sources

Retrieved 2026-10-26. Each page was opened and read against the claim next to it.

IRS Topic 558, additional tax on early distributions: 10% of the taxable part, the age 59½ line and the exception for separation from service after age 55.
IRS Topic 413, rollovers from retirement plans: Mandatory withholding, generally 20%, on taxable eligible rollover distributions; direct rollover avoids it.
IRS Notice 2025-67, 2026 retirement plan limits: the 2026 elective-deferral limit of $24,500 and the plans it covers, including the Thrift Savings Plan.
IRS, retirement topics: required minimum distributions: age 73 starting point and the 25% excise tax for a missed RMD.

Common mix-ups

Often assumedIf I retire at 55, my TSP withdrawals are tax-free and penalty-free.

What the source saysThe IRS exception is for distributions made after you separated from service after reaching age 55, and it removes only the 10% additional tax. A pre-tax withdrawal is still included in income and taxed at your ordinary rates. ^[1]
Often assumedThe 20% taken out of a TSP payout is the tax I owe on it.

What the source saysThe IRS describes the 20% as mandatory withholding on taxable eligible rollover distributions, generally. It is a prepayment toward your return, so you can owe more or get some back depending on your actual bracket. ^[2]

Checked against these sources on 2026-10-26.

Frequently asked questions

Do I owe the 10% penalty on a TSP withdrawal after leaving at 55?

The 10% additional tax does not apply to distributions made after you separated from service after reaching age 55. The test is your age in the year you left federal service. Ordinary income tax still applies to a pre-tax withdrawal.

How much tax is withheld from a TSP withdrawal?

IRS Topic 413 says taxable eligible rollover distributions from employer plans generally have 20% withheld unless you do a direct rollover. That withholding is a prepayment, so you settle the difference with your return.

How long will $600,000 last at $40,000 a year?

At a 5% yearly return and a fixed $40,000 withdrawal, the example balance lasts about 25.7 years. A lower return or a larger withdrawal shortens that; the calculator recomputes it for your inputs.

Can I avoid tax by rolling the TSP into an IRA?

A direct rollover to a traditional IRA or another eligible plan is not taxed when it happens, and it avoids the 20% withholding. The money is taxed when you later take it out of the IRA.

Does the age 59½ rule matter if I separated at 56?

Not for the 10% tax. A separation after age 55 is a listed exception, so withdrawals from that plan are not hit by the additional tax even before 59½. Other IRAs you roll into follow IRA rules.

What is the 2026 TSP contribution limit?

IRS Notice 2025-67 sets the 2026 elective-deferral limit for 401(k), 403(b), governmental 457(b) and the Thrift Savings Plan at $24,500, up from $23,500 in 2025. Catch-up contributions are on top of that for eligible ages.

Estimate only

This is an educational estimate, not benefits, tax or legal advice. OPM, DFAS, the Thrift Savings Plan or your plan administrator makes the binding calculation, and rules change. Nothing you enter leaves your browser.