Two key deadlines are approaching for some federal employees and retirees. The first deadline is for those federal employees and retirees born between January 1 and December 31, 1952, and who are traditional IRA owners and/or retired qualified retirement plan (401(k), 403(b), or 457 retirement plans) and Thrift Savings Plan (TSP) participants. They have a deadline of April 1,2026 to take their first required minimum distribution (RMD) from their traditional IRA and/or any of the qualified retirement plans they had previously participated in. The second deadline applies to federal retirees age 65 and older who did not enroll in Medicare Part B when they were first eligible. March 31,2026 is the end of Medicare’s current General Enrollment Period (GEP) which started January 1, 2026. During a GEP, any individual eligible to enroll in Medicare may do so. This column discusses these two deadlines.
April 1,2026 Deadline for Individuals Born Between January 1 and December 31,1952 to Take Their First RMD
Prior to the passage of the SECURE Act in December 2019, any traditional IRA owner or retired qualified retirement plan participant (including TSP participants) had to take their first RMD no later than April 1 following the year they became 70.5. This deadline is called the required beginning date (RBD) for an individual’s RMD. With the passage of the SECURE Act in December 2019, the RBD changed. Effective January 1,2020, any individual born after June 30,1949 and who owned a traditional IRA and/or was a retired qualified retirement participant had a RBD of April 1st following the year the individual becomes 72.
Two years later SECURE Act 2.0 was passed into law in December 2022. There are several provisions contained in SECURE Act 2.0. One provision was that effective January 1,2023, the RBD was changed as follows: (1) Any traditional IRA owner and retired qualified retirement plan participant born between January 1,1951 and December 31,1958 has an RBD of April 1 following the year he or she becomes 73; and (2) Any traditional IRA owner and retired qualified retirement plan participant born after December 31,1958 has an RBD of April 1 following the year he or she becomes 75.
Note that the TSP is not included in the list of qualified retirement plans. The TSP is not classified as a qualified retirement plan; however, the TSP does incorporate many of the rules associated with qualified retirements plans including the RMD rules. Retired TSP participants must adhere to the RMD rules. Most importantly, the TSP will not allow a TSP participant to miss an RMD deadline. The reason the TSP will not allow a retired TSP participant to miss a TSP RMD deadline is because if a retired TSP participant has not taken his or her annual RMD within one month of the deadline, then the TSP will automatically send the TSP participant (or directly deposit) a check for the RMD amount within one month of the RMD deadline (other than the first year RMD deadline is the RBD, the RMD deadline in every year starting with the second year is December 31st of that year).
Any retired TSP participant born during 1952 became 73 during 2025 and therefore has an RBD of April 1,2026. The retired TSP participant must take his or her first RMD must do so by April 1,2026. Fortunately for retired TSP participants. the TSP will not allow a retired participant to miss that first year TSP RMD deadline. If a retired TSP participant born during 1952 has not taken their first year TSP RMD by March 12, 2026, then the TSP will automatically make a withdrawal in the amount of the first TSP RMD and send it to the TSP participant. This means that any retired TSP participant who was born during 1952 and had not made their traditional TSP RMD by March 12,2026 should expect to receive a check from the TSP by the third week of March 2026. Those TSP participants are advised to confirm receipt of that first year RMD.
This is not the case if a federal employee or retiree who was born during 1952 and who owns traditional IRAs and/or qualified retirement accounts. He or she must request an RMD payout from their traditional IRA custodians and/or retirement plan administrator. If they have not done so, then they are advised to do so as soon as possible in order to meet the April 1,2026 first-year RMD deadline. The IRS penalty for missing or not taking the full RMD is 25 percent of the deficit. Therefore, any affected federal employee who has not taken their first year RMD has about two weeks to do so.
Another Opportunity to Enroll in “Original Medicare” (Medicare Part A and Medicare B)
Most federal retirees enroll in Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) during their initial enrollment period (IEP). The IEP spans a seven-month period that begins three months prior to the month an individual becomes age 65 and ends at the end of the third month after the month the individual becomes age 65. However, not every federal retiree signs up for Medicare Part B during his or her IEP for a number of reasons. These reasons include cost (unlike Medicare Part A in which there is no monthly premium cost whereas Medicare Part B is not free and a monthly premium must be paid. The higher one’s adjusted gross income, the higher the Medicare Part B premium. Another reason for enrolling during the GEP is that an individual failed to enroll in Medicare Part B during his or her IEP.
Fortunately, those federal retirees who miss their seven-month IEP Medicare Part B enrollment window can enroll during a GEP. The current GEP started January 1,2026 and will end on March 31, 2026. For those who enroll in Medicare during the GEP, Medicare Part A and Medicare Part B coverage will become effective on the first day of the following month. For example, if a federal retiree 66 is enrolling in Original Medicare on February 18, 2026, then the retiree’s Medicare Part A and Medicare Part B coverage becomes effective March 1, 2026.
An individual’s Medicare Part B premium will go up 10% for each 12-month period the individual was eligible to enroll in Part B but did not enroll unless the individual qualifies for an exception such as coverage under an employer-sponsored group health insurance plan (such as the Federal Employees Health Benefits health plan).
There is no late enrollment penalty for Medicare Part A because almost all individuals do not pay a monthly premium for Medicare Part A. But there is a late enrollment penalty for Medicare Part B equal to 10 percent for each full 12-month period without the Medicare Part B coverage that could have started earlier. The following examples illustrate:
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Example 1. Paul retired from federal service in 2022 at the age of 62. Three years later in January 2025, Paul became 65. His IEP for enrolling in Medicare Part B started October 1,2024 and ended April 30,2025. Paul did not enroll in Medicare Part B during his IEP but instead enrolled in March 2026 during the GEP. Paul’s Medicare Part B enrollment will become effective April 1,2026, 11 months after his IEP ended. Paul will not be subject to a 10 percent Medicare Part B late enrollment penalty because he was not enrolled in Medicare Part B for more than 12 full months starting with end of his IEP (April 30, 2025) and the effective date of his Medicare Part B enrollment during the GEP (April 1, 2026).
Example 2. Sharon retired from federal service in 2021 at the age 62. She turned 65 in July 2024. Her IEP for enrolling in Medicare Part B began April 1,2024 and ended October 31, 2024. Sharon did not enroll in Medicare Part B during her IEP but rather in March 2026. Her enrollment in Part B becomes effective April 1,2026, 17 months after her IEP ended. Since it has been at least 12 months (but fewer than 24 months between the end of Sharon’s IEP and her April 1,2026 Medicare Part B enrollment date, Sharon will be subject to a permanent 10 percent Medicare Part B late enrollment penalty.
As mentioned, there are exceptions to Medicare Part B late enrollment penalties. One exception applies to an individual working at age 65 and who is covered by an employer-sponsored group health insurance plan covering at least 20 full-time employees. An example of an employer-sponsored group health plan covering at least 20 full-time employees is the Federal Employee Health Benefits (FEHB) health plan. If a federal employee continues to work in federal service past age 65 and is enrolled in the FEHB group health plan, then the employee is not required to enroll in Medicare Part B until he or she retires from federal service. Most importantly, the employee will not be subject to a late enrollment penalty for Medicare Part B provided he or she enrolls during his or her Special Enrollment Period (SEP). The SEP is an 8-month period starting on the effective date of a federal employee’s retirement and ending 8 months later. For most employees, the effective date of an employee’s retirement is the first day of the month following the month an employee retires. A retired employee can enroll in Medicare Part B anytime during the SEP and will not be subject to a Medicare Part B late enrollment penalty. The following example illustrates:
Example 3. Charles retired from federal service at age 67 on December 31, 2024. When Charles was age 65, he enrolled in Medicare Part A (Hospital Insurance). There is no monthly premium cost for Medicare Part A (assuming an individual has been paying the Medicare Part A payroll tax for at least 10 years). However, Charles did not enroll in Medicare Part B at the time he enrolled in Medicare Part A. This is because at age 65, Charles was in federal service and enrolled in a FEHB group health plan. In May 2025, about four months after he retired, Charles enrolled in Medicare Part B and with no late enrollment penalty. This is because Charles enrolled during his SEP (January 1,2025 to August 31,2025).
The following example illustrates what happens when a retired employee does not enroll in Medicare Part B during his or her SEP and therefore must enroll during the GEP:
Example 4. Susan retired from federal service on May 31,2024 at age 68. When Susan was age 65, she enrolled in Medicare Part A but not Medicare Part B. This is because at age 65 Susan was in federal service and enrolled in an FEHB program health plan. Susan did not enroll in Medicare Part B during her SEP (June 1,2024 through January 31, 2025). She instead enrolled in Medicare Part B in February 2026 during the GEP. Susan’s Medicare Part B coverage became effective March 1,2026. Since it will be more than 12 months but fewer than 24 months between the end of Susan’s SEP (January 31,2025) and the effective date of Susan’s Medicare Part B enrollment (March 1,2026), Susan will be subject to a 10 percent Medicare Part B late enrollment penalty for the rest of her life.
Edward A. Zurndorfer is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Life Underwriter, Chartered Financial Consultant, Chartered Federal Employee Benefits Consultant, Certified Employees Benefits Specialist and IRS Enrolled Agent in Silver Spring, MD. Tax planning, Federal employee benefits, retirement and insurance consulting services offered through EZ Accounting and Financial Services, and EZ Federal Benefits Seminars, located at 833 Bromley Street - Suite A, Silver Spring, MD 20902-3019 and telephone number 301-681-1652. Raymond James is not affiliated with and does not endorse the opinions or services of Edward A. Zurndorfer or EZ Accounting and Financial Services. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
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Ed Zurndorfer, EA, ATA, CFP®, CLU®, ChFC®, CEBS®, ChFEBC℠: Federal Employee Benefits Expert
A former career Federal employee, Ed has published a staggering 1,200+ separate articles on Federal Benefits and Retirement!
Just “Google” his name, and you are likely to find a plethora of sites that contain his writings. Drawn to its mission to reach, teach
and serve Feds, Serving Those Who Serve is the only financial planning practice with which Ed has chosen to affiliate in over
20 years teaching. In addition to conducting Federal Benefits seminars for Serving Those Who Serve, you can find Ed’s
writings here on our blog in the FedZone, and on Fed-Soup, MyFederalRetirement, FederalNews Radio and NITP.
He is a member of the Maryland Society of Accountants, the National Association of Enrolled Agents, the International Society of Certified Employee Benefits Specialists, the Financial Planning Association, the National Association of Health Underwriters,
and the Society of Financial Service Professionals. Since 1999, Ed has taught many thousands of Federal employees about
their benefits, in person and at Federal agencies all over the country. Ed is a true national treasure.
Edward A. Zurndorfer is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Life Underwriter, Chartered Financial Consultant, Chartered Federal Employee Benefits Consultant, Certified Employees Benefits Specialist and IRS Enrolled Agent in Silver Spring, MD. Tax planning, Federal employee benefits, retirement and insurance consulting services offered through EZ Accounting and Financial Services, and EZ Federal Benefits Seminars, located at 833 Bromley Street - Suite A, Silver Spring, MD 20902-3019 and telephone number 301-681-1652. Raymond James is not affiliated with and does not endorse the opinions or services of Edward A. Zurndorfer or EZ Accounting and Financial Services. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.