![]() There are several options for withdrawing your money from the TSP once you separate or retire from federal service. However, you are restricted from further in-service withdrawals if you have an outstanding TSP loan. In-service TSP withdrawals include general purpose and residential loans that you must repay while you are still working. Some situations allow you to withdraw money from your TSP while you are still working as a federal employee. The TSP has flexible withdrawal options when it comes time to spend down your nest egg. Different requirements for TSP contribution matching apply to US military members under the Blended Retirement System. However, agency contributions always go into your traditional TSP balance. ![]() For example, the C fund is one of the most popular TSP fund options.įor civilian employees, the government will match 5% of your salary no matter which type of contribution you make. In addition, TSP investment options are low-cost funds that generally track passive index fund equivalents. This helps you keep your hard-earned savings instead of spending them on fees! As a TSP participant, you benefit from their modest administrative expenses and minimal overhead costs by paying low total expense ratios. The TSP is a valuable benefit of federal employment that helps you save for retirement.Ī federal government entity called the Federal Thrift and Retirement Board oversees the TSP. Check out this article to learn about whether you should max contributions to your TSP. You can make an additional “catch-up contribution” of $6,500 if you are over age 50. The maximum contribution limit for both types of TSP account is $20,500. Both are great choices to start saving towards your future retirement income! You pay taxes in the current year on contributions to the Roth TSP. You defer paying taxes until retirement on contributions to the Traditional TSP. These accounts have different tax benefits. You can contribute to a Traditional or a Roth TSP. It’s a powerful tool for saving for retirement. The TSP is similar to 401(k) retirement benefits available to private sector employees. The Thrift Savings Plan (TSP) is a retirement savings plan available to federal employees and members of the uniformed services. If you make a purchase after clicking on a link, I get a small percentage of the sale at no additional cost to you. ![]() Please do not confuse my personal blog for financial advice, tax advice or an official position of the U.S. Where to get more information on the TSP. ![]() ![]()
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