How is my TSP taxed when I withdraw it?

By the OnPAR Federal Retirement Education editorial team · Last updated October 27, 2026

Traditional TSP withdrawals are taxed as ordinary income in the year you take them, and the TSP withholds 20% federal tax on most eligible single withdrawals. Roth TSP withdrawals are tax-free if the account is 5 years old and you are 59½ or older (or disabled/deceased).

Rolling traditional money into an IRA moves the tax to later; it does not erase it.

Run the numbers → open the calculator

Sources

• TSP: Tax treatment