Thrift Savings Plan
The Thrift Savings Plan is a tax-advantaged, defined-contribution retirement savings plan similar in many ways to corporate 401(k) plans.
If you’re a federal employee enrolled in FERS, you receive an automatic Agency contribution to your TSP account that’s equal to 1 percent of your pay. Plus, you’re eligible for additional Agency contributions matching the amount (up to 5%) you designate to be withheld from your pay and deposited to your TSP.*
If you’re a federal employee enrolled in CSRS, you may contribute to a TSP account, but you receive no matching contribution.
Whether enrolled in FERS or CSRS, you can enjoy the significant benefits of tax-deferred earnings on tax-deductible contributions to your TSP account for any amount up to the Internal Revenue Code annual limit — for 2008, $15,500 ($20,500 if you’re age 50 or older, under the Internal Revenue Code’s “catch-up” provision). And you can allocate the investment funds in your TSP among several choices to help you pursue your financial goals in the time frame you specify.
When considering the part a Thrift Savings Plan account may play in supplying your retirement income, some essential questions to ask include:
- How much should I contribute to my TSP account to fund my retirement?
- To what available investments, and in what proportions, should I allocate my contributions to my TSP?
- Do the investment funds in my TSP complement any other investments I may have so that my entire portfolio is diversified appropriately for my investment strategy and financial goals?
We’re ready to help you determine the answers to these questions and integrate your TSP account into a comprehensive financial plan to help you pursue your financial goals. To learn more, contact a trusted first Command Financial Advisor today.
*Contributions are matched dollar-for-dollar on the first 3% of pay you contribute each pay period and 50 cents on the dollar for the next 2% of pay.
This description is provided for informational purposes only. First Command Financial Services, Inc. and its related entities are not affiliated with, authorized to sell or represent on behalf of, or otherwise endorsed by the federal employee benefits programs referenced on this web site or by the U.S. government or U.S. armed forces.