Tax season has officially begun for federal employees and retirees. As reported by FEDweek, the Thrift Savings Plan (TSP) has released its definitive schedule for issuing the tax forms and notices you need to file your 2025 return.
For retirees, this schedule is critical. Filing your taxes before you have these documents—or filing based on incomplete data—can lead to rejected returns, amended filings, and potential penalties. Here is exactly when you should expect your paperwork and why you might want to wait before heading to your accountant.
🗓️ The Official 2026 TSP Notice Schedule
According to the latest TSP announcement, here is when the key documents will hit your mailbox (physical or digital):
- IRS Form 1099-R (Withdrawals):
- Mailed: Mid-January 2026.
- Online Access: Available in your “My Account” secure mailbox by mid-February.
- Who gets one? Participants who received a withdrawal, distribution, or had a taxed/foreclosed loan between Jan 1 and Dec 31, 2025.
- RMD Calculation Notices:
- Sent: Early January 2026.
- Who gets one? Separated participants who will be 73 or older in 2026 and spousal beneficiaries with RMDs due.
- Life Expectancy Recalculation Notices:
- Sent: Early January 2026.
- Who gets one? Participants receiving life-expectancy based installment payments.
Critical Note on Timing: The TSP advises that if you are expecting a corrected Form 1099-R, you should wait to file. Corrected forms are typically issued within three weeks of the error being verified.
đź“Š Sound Data: The Cost of Missing the Details
These notices are not just administrative formalities; they carry significant financial weight.
1. The “Noon” Cutoff: Did you try to squeeze in a withdrawal at the end of the year? The TSP has confirmed that any withdrawal requested after 12:00 PM Eastern Time on December 29, 2025, was processed in 2026.
- The Impact: This income will not appear on your 2025 1099-R. It is taxable income for 2026. If you file your taxes expecting this deduction or income to be there, your numbers will not match the IRS records.
2. The High Stakes of RMDs: The “Early January” RMD notice is arguably the most important document a retiree receives.
- The Penalty: Under the SECURE 2.0 Act, the penalty for failing to take your full Required Minimum Distribution (RMD) is 25% of the amount you failed to withdraw. (This can be reduced to 10% if corrected within two years).
- The Math: If your RMD was $20,000 and you missed it because you didn’t check your notice, you could owe the IRS a $5,000 excise tax—money that vanishes from your retirement savings instantly.
3. 1099-R Confusion: Data shows a common point of confusion: Active employees generally do not receive a 1099-R. You only get this form if money left the plan. If you simply contributed and watched your balance grow, there is no taxable event to report.
🛡️ Don’t Just “File and Forget”—Plan.
The arrival of tax forms is often a source of stress, but it should be a trigger for strategy. Internal Benefit Advisors helps you look beyond the compliance boxes to see the bigger tax picture.
How We Help You Navigate Tax Season:
- RMD Verification: We don’t just trust the automated notice. We independently calculate your RMD to ensure the TSP’s number matches your records, preventing costly under-withdrawal penalties.
- Tax Withholding Review: If you owe money this year, your TSP withholding was likely set too low. We help you adjust your voluntary withholding on your monthly payments so you break even next year.
- 1099-R Audit: We review your 1099-R against your actual withdrawals to catch errors (like a direct rollover being miscoded as a taxable cash distribution) before you file with the IRS.
The forms are on their way. Make sure you know what to do with them.
Contact Internal Benefit Advisors today for a tax-efficient retirement income review.
References
- FEDweek. “TSP Announces Schedule for Tax, Other Notices.” January 6, 2026.
- Thrift Savings Plan (TSP). January Processing Schedule & Tax Information.
- Internal Revenue Service (IRS). Retirement Plan and IRA Required Minimum Distributions FAQs.
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
Top 5 TSP Mistakes to AVOID in 2025!
This video is relevant because it highlights common errors, such as mishandling withdrawals and RMDs, which directly relate to the tax notices and penalties discussed in the article.
Top 5 TSP Mistakes to AVOID in 2025! – YouTube
