What You Need to Know About the Thrift Savings Plan

Know the details of this investment plan so you can leverage this benefit.

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and uniformed Service members. Details can be found at TSP but here are a few key features and benefits:

• All Service members are eligible to participate in the TSP.
• Service members can contribute up to 100% of base pay, special pay, and bonus pay up to a maximum annual contribution amount ($23,000 in 2024, and $69,000 in 2024 if in a tax-free combat zone). In addition, catch-up contributions of $7,500 are allowed for those aged 50 and older.
• Service member contributions and associated earnings are always theirs to keep.
• Service member contributions can be pretax (Traditional) or after-tax (Roth) but are pretax by default.
• Earnings and growth are tax-deferred.
• Multiple investment options are available from conservative to aggressive.
• Administrative and investment fees are very low compared to other retirement plans.
• Multiple withdrawal options are available at retirement (typically age 59½).
• Beneficiary receives balance at participant’s death.