Video icon Video

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 ($22,500 in 2023, and $66,000 in 2023 if in a tax-free combat zone). In addition, catch-up contributions of $6,500 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.