In early January, the TSP will send RMD calculation notices to separated participants who will be 73 and older in 2026 and to spousal beneficiaries with RMDs due for the 2026 calendar year. Image: Yuriy K/Shutterstock.com
By: FEDweek Staff
The TSP has announced its schedule for issuing key notices for tax and other purposes. In its words:
* “IRS Form 1099-R — In mid-January, the TSP will mail IRS Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to participants who received a withdrawal and/or a taxed or foreclosed loan between January 1 and December 31, 2025. (Due to required processing time, withdrawals requested after noon eastern time on December 29, 2025, will be considered taxable income for 2026.) A copy of your 2025 Form 1099-R will also be available in your My Account secure participant mailbox by mid-February. If needed, corrected forms will be issued within three weeks of verifying the correction. If you’re expecting a corrected Form 1099-R, you may wish to wait to file your taxes until you receive the form.”
* “Life expectancy recalculation notices — TSP life expectancy installments will be recalculated according to required updates to the assumptions used in determining those amounts. In early January, we will send notices with more information, including the recalculated amounts, to participants receiving those installments. Notices will go out based on participants’ delivery preferences on file (by mail or online through the secure participant mailbox in My Account).”
* “Required minimum distribution (RMD) notices — In early January, we will send RMD calculation notices to separated participants who will be 73 and older in 2026 and to spousal beneficiaries with RMDs due for the 2026 calendar year. Notices will go out based on participants’ delivery preferences on file (by mail or online through the secure participant mailbox in My Account).”
The TSP added: “If you haven’t done so already, we strongly encourage you to add direct deposit information in My Account to receive any installments and/or RMDs quickly and easily. Log in to My Account at tsp.gov and go to the Financial Institutions page to add or update your direct deposit information today.”
Reminder – The standard maximum investment limit for TSP participants is rising for 2026 from $23,500 to $24,500; that is the “elective deferral limit” applying in the TSP along with other similar tax-favored retirement savings plans, and applies to the combination of traditional pre-tax investing and Roth after-tax investing, for those making both types.
Also effective in 2026, TSP catch-up investments must be made in Roth status for those whose earnings in the prior year exceeded a threshold—which for 2026 purposes will be $150,000 in 2025 earnings.
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See also,
Figures Changing in Several Federal Workforce Benefits Policies
How Withdrawal Order Affects Taxes for Federal Retirees