TSP Withdrawal Calculator

Estimates the sustainable monthly withdrawal from your Thrift Savings Plan balance using a standard fixed-period annuity formula — TSP balance, expected annual return, and the number of years you want the money to last.

TSP Balance

Total balance across your Traditional + Roth TSP accounts at retirement. Expected Annual Return

Long-term average annual return after retirement. 5–7% is a common assumption for a balanced TSP allocation. Withdrawal Period

years

How long you want the TSP balance to last. Federal retirees often plan for 25–30 years of retirement.

Sustainable Monthly Withdrawal

$0/mo

$0 per year

TSP balance used: $0
Annual return: 0%
Withdrawal period: 0 years

This is a fixed-period withdrawal estimate that assumes a constant return and depletes the balance over the chosen number of years. It does not model market volatility, inflation, sequence-of-returns risk, RMDs starting at age 73, or taxes on Traditional TSP withdrawals. For a withdrawal strategy built around your actual retirement income picture, request a personalized Federal Retirement Report.

STONEBRIDGE CAPITAL MANAGEMENT • LITTLETON, COLORADO

You’ve earned a federal retirement worth understanding clearly. We help federal employees across the Denver metro area coordinate CSRS, FERS, TSP, FEHB, FEGLI, and Social Security into one clear retirement plan, so you can make confident decisions about when to retire, how your income will work, and how to protect the benefits you’ve earned.

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How the TSP Withdrawal Calculator Works

Enter three pieces of information — your TSP balance at retirement, the expected annual return on your investments after you retire, and the number of years you want the balance to last — and the calculator returns the sustainable monthly withdrawal. The formula is the standard fixed-period annuity calculation: balance × (monthly rate / (1 − (1 + monthly rate)⁻ⁿ)), where n is the total number of monthly payments.

The withdrawal amount that the calculator returns is the level monthly payment that exactly depletes the balance over your chosen period. If your TSP investments earn the expected return you specify, you can draw that monthly amount every month for the full period and finish with a balance of zero.

This is a simplified model. It does not model market volatility (a bad first few years of returns can shorten the actual sustainable period), inflation (the monthly amount is a fixed nominal value), Required Minimum Distributions starting at age 73, or the federal income tax owed on Traditional TSP withdrawals.

This calculator is provided as an educational starting point for federal employees in the Denver metro area and across the Colorado Front Range. For a complete TSP withdrawal strategy built around your specific retirement income, tax situation, and longevity expectations, request a personalized Federal Retirement Report.

What Your Withdrawal Estimate Means

The sustainable withdrawal the calculator returns is a planning target, not a guarantee. Three real-world factors will affect what actually happens to your TSP balance and what you actually receive each month.

Market returns rarely match a single fixed assumption. A balanced TSP portfolio (a mix of C, S, I, and G or F funds) averages 5–7% over the long term, but the actual return in any given year can be sharply negative. A run of bad returns in the first few years of retirement — called sequence-of-returns risk — can drain the balance faster than the calculator assumes. We adjust for this in real plans by holding 1–2 years of withdrawals in safer assets and using flexible withdrawal rules.

Required Minimum Distributions kick in at age 73. Once you reach that age, the IRS dictates a minimum amount you must withdraw each year from Traditional TSP balances. Your sustainable withdrawal plan may need to flex to satisfy the RMD even if it produces more income than you want in a given year.

Traditional TSP withdrawals are taxed as ordinary income. The dollar amount the calculator returns is the gross withdrawal. After federal income tax (and Colorado state tax), the actual cash you receive is meaningfully less. For federal employees who want a broader overview of how TSP coordinates with the rest of your retirement income, our Federal Retirement Workshop walks through every major federal benefit program in plain language, including TSP withdrawal strategy.

For a complete withdrawal strategy built around your specific TSP balance, retirement timing, tax situation, and longevity expectations, request a personalized Federal Retirement Report. Learn more about our approach and what makes Stonebridge Capital Management different.

What You Get When You Work With Stonebridge

A Personalized Federal Retirement Roadmap

We bring together your pension, TSP, FEHB, FEGLI, survivor benefits, Social Security, and retirement timing into one coordinated retirement plan.
You’ll see where you stand today, the options available to you, your projected retirement income, and a retirement timeline you can move toward with confidence.

Plain-Language Guidance, Not Sales Pressure

Federal retirement is complicated enough without jargon, sales tactics, or manufactured urgency.
We explain your options clearly, answer your questions honestly, and help you understand the trade-offs before making decisions.
Decisions happen at your pace, not ours.

Colorado-Based Federal Retirement Specialists

Stonebridge is based in the Denver metro area and serves federal employees throughout Colorado’s Front Range.
Meet with us in person at our Inverness office or virtually from anywhere in Colorado.
When questions arise, you’ll have a local team you can reach, not a national call center.

Ready to see how the pieces fit together for your specific situation?

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Frequently Asked Questions About TSP Withdrawals

How accurate is this TSP withdrawal calculator?

The calculator uses the standard fixed-period annuity payment formula, which is mathematically exact for the inputs you provide. The real-world accuracy depends on whether your TSP investments actually earn the expected return you entered, and whether you actually withdraw the calculated monthly amount without adjustment.

Market volatility — particularly a bad stretch of returns in the first few years of retirement — can drain the balance faster than the calculator assumes. For a TSP withdrawal strategy that accounts for sequence-of-returns risk, request a personalized Federal Retirement Report.

What annual return should I assume for my TSP in retirement?

There is no single right answer. A balanced TSP portfolio (a mix of C, S, I, and G or F funds) has averaged about 7–8% historically. But retirees typically reduce equity exposure to lower volatility, which also lowers expected return — often to the 4–6% range. A conservative TSP retiree mostly in G and F funds might assume 3–4%.

A reasonable middle ground for most federal retirees is 5–6%. The calculator lets you change this assumption to see how sensitive the monthly amount is to the rate.

Why doesn’t the calculator include market volatility?

The calculator uses a deterministic formula that assumes a constant return year over year. In reality, market returns vary widely from year to year. Two retirees with identical balances and identical average returns can have completely different outcomes if one experiences a bear market in the first three years of retirement (called sequence-of-returns risk).

The standard approach to handle this in real planning is to keep 1–2 years of withdrawals in safer assets (the G Fund or a savings account) to avoid selling depreciated investments during downturns. The Federal Retirement Report includes this analysis.

Will Required Minimum Distributions force a higher withdrawal?

Yes, potentially. Starting at age 73 (rising to 75 over time), the IRS requires you to take a minimum distribution from your Traditional TSP each year. The RMD is calculated as your prior year’s December 31 balance divided by an IRS life expectancy factor.

For some retirees, the RMD is higher than the calculator’s sustainable withdrawal — meaning you would be forced to withdraw more than the model assumes. Roth TSP balances are not subject to RMD during your lifetime (the IRS changed this rule in 2024).

Do Traditional and Roth TSP withdrawals work differently?

Yes. Traditional TSP withdrawals are taxed as ordinary federal income (and Colorado state income), so the cash you receive is meaningfully less than the gross. Roth TSP withdrawals are tax-free if you have held the Roth account for at least 5 years and you are at least 59½.

The calculator does not separate the two — enter your total combined TSP balance. For tax planning purposes, you would want to think about which account you draw from first and how the mix affects your overall tax picture.

What happens if I outlive my TSP balance?

The calculator’s withdrawal schedule depletes the balance exactly over the period you choose. If you live longer than the period, your TSP withdrawal ends — you would then rely entirely on your FERS pension and Social Security.

Most federal retirement planners recommend planning for at least 30 years of withdrawals (to age 90 or beyond), and many use a flexible withdrawal rule that adjusts each year based on portfolio performance rather than a fixed amount.

Should I leave my money in TSP or roll it over to an IRA at retirement?

Both have trade-offs. TSP has very low expense ratios (currently among the lowest in the industry), the unique G Fund (which no IRA can replicate), and the option to convert to a TSP annuity. IRAs offer more investment choices, more flexible withdrawal mechanics, and easier estate planning.

Many federal retirees keep TSP for the G Fund exposure and roll a portion to an IRA for flexibility. This is a meaningful decision and worth discussing during a personalized Federal Retirement Report.

Serving Federal Employees Across The Colorado Front Range

Stonebridge is based in the Denver metro area and works with federal employees throughout Colorado’s Front Range.

Our clients serve in a wide range of federal agencies and organizations across the state, including the Denver Federal Center, VA Eastern Colorado Health Care System, Buckley Space Force Base, the Internal Revenue Service, the United States Mint, NREL, NOAA, NIST, and many others.

We meet with clients in person at our Inverness office and virtually throughout Colorado.

Primary Service Area

Denver · Littleton · Highlands Ranch · Centennial · Lakewood · Englewood · Parker · Castle Rock · Aurora · Arvada · Westminster · Broomfield · Thornton · Wheat Ridge · Golden · Lone Tree

Extended Service Area

Colorado Springs · Boulder · Fort Collins · Loveland · Greeley · Pueblo

Get Your Personalized Federal Retirement Report

The Federal Retirement Report is designed to help you understand where you stand today and what decisions may lie ahead. Built around your service history, benefits, and retirement goals, it provides a personalized analysis of your pension, TSP, healthcare benefits, survivor elections, retirement income, and other key planning considerations.

There is no cost and no obligation. It is simply a practical way to gain clarity before making important retirement decisions.

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TSP planning for federal employees

The TSP is one of the biggest levers in your federal retirement plan. The calculator above helps with the withdrawal side, but the pieces below go deeper on how to build the balance, protect it, and turn it into income without making expensive mistakes.

Related Federal Retirement Resources

Other calculators for federal employees:

FERS Pension Calculator — estimate your federal annuity
FERS Supplement Calculator — bridge income from MRA to age 62
Retirement Income Calculator — combine your pension, TSP, and Social Security

Federal retirement planning by city — the same specialist work in your community:

For a broader overview of our approach, see our federal retirement planning hub.

TSP Withdrawal Calculator