TSP cash, withholding & tax
Trace a one-time post-separation distribution from gross TSP dollars to rollover, cash now, estimated tax, and what may still be due when you file.
Withdrawal estimate updated. Cash paid now $50,400; estimated after-tax cash $46,080.
2026 federal rule set
Effective for modeled 2026 distributions · verified July 22, 2026
Planning estimate ready
Partial single payment · Eligible-rollover distribution · Mixed Traditional and Roth source
Cash paid by TSP now
$50,400.00
After modeled TSP federal withholding. Estimated after-tax cash is $46,080.00 after the liability assumptions below.
Withholding changes the payment you receive today; it does not settle the final tax bill.
Swipe horizontally to see each treatment and amount.
| Step | Treatment | Amount |
|---|---|---|
| Gross distribution requested | Start | $100,000.00 |
| Same-tax direct rollover | Subtract | −$40,000.00 |
| Cash distribution before withholding | Equals | $60,000.00 |
| TSP federal withholding | 20% of taxable cash | −$9,600.00 |
| TSP state/local withholding | Always $0 | $0.00 |
| Cash paid now | Equals | $50,400.00 |
This uses your marginal-rate assumptions on this distribution only. It is not a completed tax return.
The direct-rollover source amounts must equal the total same-tax rollover.
Swipe horizontally to compare every source column.
| Source | Gross | Rollover | Cash | Taxable | Nontaxable |
|---|---|---|---|---|---|
| Traditional | $80,000.00 | $32,000.00 | $48,000.00 | $45,000.00 | $3,000.00 |
| Roth | $20,000.00 | $8,000.00 | $12,000.00 | $3,000.00 | $9,000.00 |
Review these assumptions
A rollover to an IRA can lose TSP or employer-plan separation-from-service exceptions that do not apply the same way to later IRA distributions. Compare exception treatment before moving money.
This estimate is not a tax return or an eligibility determination. Periodic-payment Form W-4P calculations, RMDs, life-expectancy payments, annuities and final exception eligibility are outside this tool.
Your entries are calculated in this browser. This page does not transmit or store the account, age, service, or tax values you enter.
Method
Each stage answers a different question. Keeping them separate prevents withholding from being subtracted twice and makes every approximation visible.
The requested gross amount is first checked against the total vested balance. A partial single payment must be at least $1,000; an entire $5–$199.99 account follows the TSP automatic-distribution rules. A same-tax direct rollover is then separated from participant cash.
Traditional tax-exempt combat-pay contributions and Roth basis can be nontaxable. The calculator applies the TSP source-selection and pro-rata rules before estimating tax.
TSP withholding is a payment toward federal tax, not a verdict on what you owe. Your marginal-rate estimate and any additional 10% tax form a separate liability ledger.
Age 59½, the separation-year rule, and the qualified-public-safety rule can change the additional-tax estimate. An uncertain exception produces a range instead of an invented answer.
Read the result
TSP sends federal withholding to the IRS as a credit in your name. The estimate then compares that credit with the regular tax, state/local tax, and possible additional tax attributable to the withdrawal.
| Result | What it means |
|---|---|
| Cash now | Participant cash minus TSP federal withholding. |
| Estimated liability | Modeled regular, state/local, and additional tax—not a filed-return result. |
| Later due or refund | Estimated liability minus the federal withholding credit. |
| After-tax cash | Participant cash minus estimated liability; withholding is not subtracted again. |
Additional-tax screen
The general separation exception requires you to leave service during or after the calendar year you turn 55. Leaving at 54 and withdrawing at 56 does not satisfy that rule.
A qualified public-safety employee can use the earlier of age 50 or 25 years of service under the plan, after separation. This tool screens qualified-public-safety status and service separately; it does not determine whether your position qualifies.
These exceptions belong to employer plans. Rolling money to an IRA before a later distribution can remove the separation-based exception, even though another IRA exception might apply.
Scope & assumptions
No shared data-platform feed is needed. The rules are versioned with the page, while account composition, dates, exception facts, and tax rates come from you. If your TSP tax notice supplies an exact taxable amount, the calculator can use it instead of the balance-based estimate.
Canonical references
The calculator uses federal primary sources and reviewed local rules. Recheck the current TSP booklet and IRS forms before requesting a payment.
Rule set last verified July 22, 2026. Review annually after the IRS publishes the next W-4R and sooner after a TSP, eCFR, or tax-law change.
Questions
For the taxable part of an eligible rollover distribution paid to you, federal withholding generally defaults to 20%; Form W-4R permits a higher whole-number rate, but not a lower one. Withholding is not required if your eligible rollover distributions for the tax year total less than $200. A direct rollover generally has no current withholding. A nonperiodic payment that is not eligible for rollover generally defaults to 10% and permits a whole-number election from 0% through 100%, although rates below 10% are generally unavailable for payments delivered outside the United States and its territories. These are withholding rules, not final tax rates.
No. Under 5 C.F.R. § 1650.12, an elected partial single payment must be at least $1,000. A payment of the entire account can be smaller. If the entire vested account is at least $5 but less than $200 and the TSP processes its automatic distribution, the TSP pays it to the participant and does not offer a direct rollover. A separated account below $5 is forfeited to the TSP, but the participant can contact the record keeper to reclaim that amount without later investment earnings.
No. It generally applies to the taxable participant-paid amount before age 59½ unless an exception applies. This tool screens the age-55 separation rule, the qualified-public-safety age-50 or 25-years-of-service rule, and a user-confirmed other exception. Verify any exception before filing Form 5329.
Generally no. Separation must occur during or after the calendar year in which you turn 55. Waiting until age 55 to withdraw does not repair an earlier separation. The exception is plan-specific and generally does not follow the money into an IRA.
No. A qualified Roth distribution generally requires both the five-tax-year period and age 59½, disability, or death. This participant calculator models age and disability; beneficiary and death-account workflows are excluded. If the participant payment is not qualified, it is divided pro rata between nontaxable basis and taxable earnings.
TSP does not withhold state or local income tax. Your state may still tax the distribution. The optional state/local rate here is a user-supplied approximation and does not determine your state's actual treatment.
No. It estimates the incremental effect of one withdrawal using the rates and facts you enter. It does not model brackets, deductions, credits, other income, estimated-tax penalties, state-specific exclusions, or every exception. Your TSP tax notice, Form 1099-R, and filed return control.
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