TSP Withdrawal Calculator: Plan Your Federal Retirement in 2025

Key Takeaways

A TSP Withdrawal Calculator helps you estimate how much you can safely withdraw from your Thrift Savings Plan based on age, balance, life expectancy, and tax considerations.
Using this tool helps you plan for Required Minimum Distributions (RMDs) and avoid early withdrawal penalties or running out of funds.

What Is a TSP Withdrawal Calculator and Why Should You Use One?

If you’re a federal employee or retiree looking to create a dependable income stream in retirement, your Thrift Savings Plan (TSP) is a key component. But once you hit retirement age, the big question becomes: How much can you withdraw without running out of money or facing tax penalties? That’s where a TSP Withdrawal Calculator comes in.

A TSP Withdrawal Calculator is an interactive tool designed to help you estimate how long your savings will last based on different withdrawal strategies. It can account for factors like your current balance, projected rate of return, inflation, and life expectancy. Many calculators even let you compare options like single payments, installment payments, and life annuities.

How Can a TSP Withdrawal Calculator Help You Plan Smarter?

The 2025 retirement landscape is increasingly complex. Between fluctuating markets, rising life expectancies, and changing tax laws, a guesswork approach to your withdrawals simply won’t cut it.

Here’s how a withdrawal calculator gives you the upper hand:

Helps Avoid Early Withdrawal Penalties: If you’re under 59½, early withdrawals may trigger a 10% IRS penalty. The calculator helps you time distributions strategically.
RMD Planning: At age 73, Required Minimum Distributions (RMDs) kick in. The tool estimates how much you’ll be required to withdraw each year.
Optimizes Tax Efficiency: You can model different tax scenarios and identify when it might be better to take smaller withdrawals versus large lump sums.
Estimates Long-Term Sustainability: Visuals like amortization tables and graphs show how long your money may last based on your chosen rate of withdrawal.

What Information Do You Need to Use a TSP Withdrawal Calculator?

To get the most accurate results, you’ll need to enter:

Input	Description
TSP Balance	Your current total balance as of 2025
Desired Retirement Age	When you plan to start withdrawals
Life Expectancy	Typically based on IRS life expectancy tables
Annual Return Rate	Your assumed average rate of return (e.g., 5% per year)
Inflation Rate	Used to adjust future purchasing power
Withdrawal Type	Monthly, annual, or one-time withdrawals

With this data, the calculator provides projections of your annual income and total depletion date.

When Should You Start Using a TSP Withdrawal Calculator?

Whether you’re a few years from retirement or already retired, the best time to start using a withdrawal calculator is now.

Pre-Retirement (Ages 50–59): Forecast whether your current contributions will support your lifestyle in retirement.
Retirement Planning Stage (Ages 60–72): Estimate income distributions and time your withdrawals around tax brackets.
Post-RMD Age (73+): Monitor required withdrawals and strategize how to preserve funds.

Using this tool annually helps you stay aligned with both your goals and changing federal guidelines.

Can You Use the TSP Withdrawal Calculator for Roth and Traditional Accounts?

Yes. Most calculators allow you to toggle between Roth TSP and traditional TSP withdrawals. Here’s what to keep in mind:

Traditional TSP: Subject to income tax when withdrawn.
Roth TSP: Qualified withdrawals are tax-free, but you must meet the 5-year rule and be 59½ or older.

Blending both accounts strategically can result in lower lifetime tax liability. A withdrawal calculator helps visualize these blended strategies.

How Can the Calculator Help You Avoid Outliving Your Money?

One of the biggest fears in retirement is outliving your savings. With the average lifespan increasing, especially for retirees in good health, your TSP must last 20–30 years or more.

The calculator can project outcomes under different withdrawal rates:

Annual Withdrawal Rate	Years TSP May Last (Assuming 5% Return)
4%	~30 years
5%	~25 years
6%	~20 years

You’ll also see how inflation affects buying power over time and whether you need to adjust your strategy.

What If You Plan to Delay Withdrawals Past Age 59½?

Delaying withdrawals can offer growth potential and tax deferral, but don’t wait too long:

Required Minimum Distributions (RMDs) begin at age 73 in 2025.
Not taking RMDs can lead to a 50% penalty on the amount not withdrawn.
A calculator can help you decide if starting distributions earlier in smaller amounts makes more sense.

Should You Withdraw Monthly, Annually, or As Needed?

Each method has pros and cons, and the calculator lets you experiment with each:

Monthly Payments: Provide predictable income and are easier to budget.
Annual Withdrawals: Allow market gains to compound longer, but can cause tax spikes.
As Needed: Offers flexibility but increases the risk of overspending or triggering penalties.

Use the visual charts to compare the longevity of your TSP under each method.

Ready to See the Numbers for Yourself?

Use our free TSP Withdrawal Calculator to take the guesswork out of retirement income planning. Whether you’re fine-tuning your strategy or starting from scratch, this tool provides the clarity you need.

You can also download our free guide “Smart Withdrawal Strategies for Your TSP” — Get step-by-step tips to coordinate TSP, Social Security, and other income sources.

Or, schedule a free consultation with one of our retirement experts to walk through your results and fine-tune your approach.