Thrift Savings Plan (TSP)
About the Thrift Savings Plan
So what does TSP stand for? TSP, or Thrift Savings Plan, is a component of the three-part retirement program called the Federal Employees Retirement System (FERS) that was established in 1987. TSP is similar to 401K plans offered in the public and private sector. It serves as a retirement and investment plan for civilian employees and members of the uniformed services.
If you are covered by FERS or the former Civil Service Retirement System (CSRS), you may make TSP contributions immediately upon employment. Only those in the FERS system may receive matching contributions from their employing agency. The amount of money you have access to during retirement from TSP depends on how much you and your employer pay into the program.
Advantages of Participating in TSP
There are several ways to manage your TSP account based on your situation and retirement goals. At My Federal Plan, we will help you select the best investment plans and tax options for your goals.
Who is Eligible for a Thrift Savings Plan?
“Most employees” of the federal government are eligible to participate in TSP. This includes (but may not be limited to) the following groups:
Additionally, you must be actively employed full- or part-time in government service (civilian or uniformed) to be eligible to contribute.
Please note: TSP contribution limitations are established by the IRS and occasionally change. Current limits are published on the TSP website and elsewhere.
Work with a benefits specialist at My Federal Plan to ensure you have the most updated TSP information and let us help you make informed retirement decisions.
Contact us today for a free retirement benefits consultation.