1. What is the TSP Annuity Calculator?

The TSP (Thrift Savings Plan) Annuity Calculator estimates your monthly annuity payments based on your account balance and life expectancy factor from the 2025 tables. It helps federal employees plan their retirement income.

2. How Does the Calculator Work?

The calculator uses the TSP annuity formula:

Where:

• \( Balance \) — Your TSP account balance in USD
• \( Life\ Expectancy\ Factor \) — From 2025 TSP annuity tables (unitless)

Explanation: The equation divides your total balance by a factor based on your life expectancy to determine annual payments, which are then divided by 12 for monthly amounts.

3. Importance of Annuity Calculation

Details: Accurate annuity estimation is crucial for retirement planning, helping you understand how much monthly income your TSP balance can generate.

4. Using the Calculator

Tips: Enter your current TSP balance in USD and the appropriate life expectancy factor from the 2025 tables. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my life expectancy factor?
A: Factors are published in the 2025 TSP annuity tables based on your age and annuity option chosen (single life, joint life, etc.).

Q2: Are taxes deducted from these payments?
A: Yes, annuity payments are subject to federal income tax unless you're using Roth TSP funds.

Q3: Can I change my annuity after starting payments?
A: Generally no, TSP annuity choices are permanent once payments begin.

Q4: How does inflation affect my payments?
A: Unless you choose an inflation-adjusted option, payments remain fixed regardless of inflation.

Q5: What's the difference between annuity and monthly payments?
A: The calculator shows monthly amounts, but the actual calculation determines your annual payment which is then divided into monthly installments.