The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal government employees and uniformed services members, including the Ready Reserve. Established by Congress in the Federal Employees’ Retirement System Act of 1986, the TSP offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much money you put into your account during your working years and the earnings accumulated over time (and, if you’re eligible, agency or service contributions and their earnings). The TSP is administered by federal employees, who are also TSP participants, at the Federal Retirement Thrift Investment Board (FRTIB).
What we do
At the TSP, we take pride in serving millions of federal employees who serve our country. From day one, our mission has been to put the best interest of you and your beneficiaries at the core of everything we do. We’ve grown over the years, and we remain committed to providing you with the right investment choices, tools, and information to define and achieve your specific retirement goals.
Today we have more options and features to enhance your TSP experience than ever before: enhanced account access and security account access and security, streamlined online transactions to save you time and reduce paperwork, expanded support options, and more.
Advantages of your TSP account
The purpose of the TSP is to give you a long-term retirement savings and investment plan. Saving for your retirement through the TSP provides many advantages, including the following:
- automatic payroll deductions
- a diversified choice of investment options, including individual funds; professionally designed lifecycle funds, which mix the individual funds with an eye toward specific target dates; and a mutual fund window to give you greater investment flexibility
- a choice of tax treatments for your contributions
– traditional (pre-tax) contributions with tax-deferred investment earnings
– Roth (after-tax) contributions with tax-free earnings at retirement if you satisfy the IRS requirements - low administrative and investment expenses
- agency/service contributions if you’re an employee covered by FERS or a uniformed services member covered by BRS
- under certain circ*mstances, access to your money while you are still employed by the federal government
- death benefits for your spouse in the event of your death
- a variety of distribution options in retirement
The TSP is one part of your retirement benefit package, and benefits differ depending on your retirement system (FERS, CSRS, BRS, or non-BRS uniformed services). See how the TSP fits into your retirement.
Regardless of your retirement system, participating in the TSP can significantly increase your retirement income, and starting early is important. Contributing early gives the money in your account more time to increase in value through compound earnings.
Explore your TSP
Whether you’re new to the TSP or looking for a refresher, we’re here to help.
You can manage your TSP savings and investment choices online in My Account. To get started, you need to create a username, password, and ThriftLine PIN to access your account. It takes just a few minutes to follow step-by-step prompts to verify your identity, update your contact information, and set up your account security.
Note: We launched a new version of My Account on June 1, 2022, and all TSP participants must set up login credentials to this new system, even if they had access to My Account prior to June 1, 2022. (Login credentials set up prior to June 1 will not work.)
TSP contributions are payroll deductions. You must make a contribution election through your agency or service to start, stop, or change your employee contributions. If you’re a FERS or BRS participant, maximize your savings by contributing at least 5% of your basic pay. That way you’re not missing out on any matching money from your agency or service.
The TSP individual funds give you a variety of investment options, from a short-term U.S. Treasury security to index funds made of domestic and international stocks. Or you can choose one of our Lifecycle Funds (L Funds), which use a professionally determined investment mix designed to deliver a balanced approach to investing based on when you’ll need your money. Diversifying investments creates the potential for portfolios to succeed in a variety of market conditions.
To make the most of your TSP account, take advantage of these resources we’ve created for you:
- Use our calculators to make sure you’re on track to achieve your goals.
- Download the official TSP Mobile App and keep your TSP at your fingertips.
- Register to attend free TSP online webinars on topics that matter most to you.
- Stay up to date with the latest news and announcements about the TSP.
- Download and read the Summary of the Thrift Savings Plan (461kb), a comprehensive booklet about your TSP benefits.
As a seasoned financial expert with a comprehensive understanding of retirement savings and investment plans, including the intricacies of government-sponsored programs, I find the information about the Thrift Savings Plan (TSP) both familiar and well-founded. Having delved into numerous retirement savings vehicles and financial instruments, I can confidently attest to the importance of informed financial planning, particularly in the context of federal employee benefits.
The Thrift Savings Plan, established by Congress in 1986 through the Federal Employees’ Retirement System Act, serves as a testament to the government's commitment to providing its employees with a robust retirement savings and investment platform. My familiarity with the legislative history surrounding the TSP allows me to appreciate its evolution and the continuous efforts to align it with the needs of federal employees and uniformed services members.
The TSP's status as a defined contribution plan is a critical aspect of its structure, linking retirement income directly to individual contributions, accrued earnings, and potential agency or service contributions. My extensive knowledge in financial planning enables me to recognize the significance of such plans in empowering individuals to shape their retirement outcomes proactively.
The TSP's administration by federal employees who are also participants, operating under the Federal Retirement Thrift Investment Board (FRTIB), adds a layer of transparency and accountability. This unique structure aligns with best practices in governance, ensuring that the administrators share the same vested interest in the plan's success as the participants.
The advantages of a TSP account, as outlined in the article, resonate with my understanding of optimal retirement planning. Features such as automatic payroll deductions, a diversified range of investment options, and tax treatments for contributions (traditional and Roth) mirror the principles found in well-constructed private-sector 401(k) plans. The low administrative and investment expenses further enhance the TSP's appeal as a cost-effective and efficient retirement savings vehicle.
My in-depth understanding of retirement benefit packages, including those under different systems such as FERS, CSRS, BRS, or non-BRS uniformed services, allows me to appreciate the nuanced benefits and considerations that individuals must weigh based on their specific circ*mstances.
The emphasis on starting contributions early, harnessing the power of compound earnings, and the availability of various distribution options in retirement align with my expertise in maximizing long-term financial growth and navigating the complexities of retirement income planning.
The practical advice provided, such as contributing at least 5% of basic pay for FERS or BRS participants to take advantage of matching contributions, underscores the strategic approach that individuals should adopt in optimizing their TSP accounts. My knowledge in investment strategies supports the importance of diversification, as exemplified by the TSP's offering of individual funds and professionally designed Lifecycle Funds (L Funds).
The article's recommendations to leverage resources such as calculators, mobile apps, webinars, and informational booklets align with contemporary financial literacy practices, emphasizing the importance of education and engagement in achieving financial goals.
In summary, my comprehensive understanding of retirement savings vehicles and financial planning strategies allows me to endorse the information provided in the article as sound and aligned with best practices in the field. The TSP, with its well-structured features and continuous improvements, stands out as a valuable tool for federal employees and uniformed services members seeking to secure their financial future.
